By FX Empire.com
Risk appetite improved today as concerns over the European debt crisis eased, as Greece named Lucas Papademos the interim leader, increasing the chances of securing the bailout fund, needed to avoid collapse.
In Italy the Senate will vote on the “debt reduction measures” later in the day, which could lead to the formation of a new government led by Mario Monti, a former European Union Competition Commissioner.
Easing the concerns was the improvement seen in the US data yesterday. The trade balance deficit narrowed unexpectedly, while the jobless claims fell to the lowest in seven months.
Today’s trading volume is expected to be lower than normal as US banks are closed for veterans day, while the economic agenda is limited to UK’s PPI that fell in October, and the US consumer confidence expected to improve.
In Asia stocks gained today where Nikkei 225 close 0.16% higher and Hang Seng closed 0.91% higher. In Europe FTSE 100 rose 0.37% while DAX rose 0.73% and CAC 40 rose by 0.61%.
The euro rose today trading around 1.3644 as concerns eased and demand on the higher yielding assets increased. The pound is weakening trading around 1.5910 after the economy released a lower than expected PPI numbers.
As demand on the safe haven USD dropped, the greenback is weakening trading around 77.48, opening way for the yen to strengthen trading around 77.37, while the AUD is almost unchanged at 1.0150.
Oil prices is trading with an upside momentum around $98.07 per barrel, while gold recovered trading around $1764.65 per ounce, after the dollar weakened and the euro recovered.
Originally posted here
