By FX Empire.com
Pessimism continues to dominate markets as tensions from Europe persist after Moody’s warned France that the recent rise in the bond yields and the slowing economic growth could lead to a downgrade to France’s debt rating.
Meanwhile in the US the super-committee failed to reach an agreement over a deal to cut the U.S.deficit by at least $1.2 trillion, which raises concerns over the fiscal outlook of the United States, extending the wave of pessimism in markets.
Demand for lower yielding assets was stronger today also after Mariano Rajoy won the biggest Spanish parliamentary majority in almost 30 years and worn the nation to prepare for difficult economic times.
Persistent fears from the European debt crisis in addition to woes from the U.S. deficit saga provided the USD with a strong bullish momentum, as the greenback is trading as of this writing around the 78.35 level.
Stocks in Asia fell today after exports in Japan fell for the first time in 3 months,US lawmakers failed to reach an agreement to cut the deficit, while the uncertainties over Europe’s debt crisis persist.
Nikkei 225 fell today by 0.32%, while Hang Seng fell by 1.44%. In Europe stocks dropped as well on fears the US may face another credit downgrade, where FTSE 100 fell by 2.02%, DAX fell by 2.51% while the CAC 40 fell by 2.31%.
As the US added more uncertainties into the market investors are avoiding the high yielding risky assets, which pushed the euro down today, trading around 1.3455 as of this writing from opening of 1.3510.
The pound fell sharply today trading around 1.5695 from the opening of 1.5783, driven by the euro, as UK lacks the economic data for today, while Europe released a better than expected current account report for Sep.
Data from the US are restricted to the existing home sales for Oct. expected to present a weak outcome. The greenback’s gains pushed the commodities lower today, where oil fell around the $98.90 level, while gold fell to $1705.30.
Originally posted here
