By FX Empire.com
Since the level of uncertainty in markets remains high and the outlook for the euro zone debt crisis is unclear, traders continued to target safe haven, which drove the USD higher against majors.
Optimism was seen earlier today after Italy appointed former EU Commissioner Mario Monti as new Prime Minister, to lead the new government after Berlusconi resigned his post, boosting demand for higher yielding assets.
Yet as investors continue to watch the developments in Europe, caution was reignited ahead of a bond sale from Italy. Strong demand will suggest easing concerns over Italy’s fiscal health.
This caution provided the US dollar with a bullish momentum, although in Greece the conditions are stabilizing after Lucas Papademos was named the interim leader, damping concerns abou tEurope’s debt crisis.
The greenback is trading as of this writing around 77.10 compared with the opening at 76.66. The US will lack the fundamentals today, while in Europe the industrial production fell in Sep. to -2.0%.
In Asia stocks gained today where Nikkei 225 close 1.05% higher and Hang Seng closed 1.94% higher. after Japan’s economy grew by the fastest pace in one and a half years during the third quarter.
In Europe FTSE 100 fell 0.02% while DAX fell 0.17% and CAC 40 fell by 0.24% as of this writing, as investors await the Italian bond auction. Confidence will be boosted if demand will prove to be strong.
The euro is trading as of this writing around 1.3705 after falling from the highest today of 1.3810, while the pound is trading around 1.5955 after falling from the highest of 1.6090. The AUD also fell, trading around 1.0260.
As the USD enjoys an upside momentum, the commodities lost the early gains seen today, so oil is trading around $98.65 per barrel, while gold is hovering around $1780.30 per ounce.
Originally posted here
