Easy Forex Daily Forex Report 30-11-2012

 

The euro (EUR) is staging an impressive rebound against most of its major counterparts, as market participants see light at the end of the tunnel for the US fiscal cliff situation. President Obama shared his optimism that a deal with Congress may be achieved by Christmas. EU Commission President Barroso, talked about the 17 eurozone countries to be allowed to integrate quicker and more deeply than the 27 countries euro area at large. This comes one day after the eurogroup meeting reached an agreement on Greece. The eurozone finance ministers consented after 13 hours of negotiations on Monday to lower the interest rates on bilateral loans to the debt-ridden nation, while interest payments due to the European Financial Stability Fund (EFSF) will be postponed by 10 years.  Additionally, the maturity of the loans increased to 30 from 15 years. In the US, the fiscal cliff situation has not seen any developments and as days go by with no breakthrough, investors will start looking for alternative risk haven assets.

OIL broke below its 87.00 US dollars (USD) a barrel support and recorded a lower low 85.35, before paring its losses following an improvement in risk sentiments early in the US session. 

GOLD (XAU) dropped from 1741.44 to 1705.63 yesterday, a lower low but managed to rebound and now trades above 1720 US dollars (USD) an ounce.