Uncertainty regarding the Spanish debt crisis led to risk aversion among investors during the overnight session, causing higher-yielding assets to take losses. The euro fell close to 40 pips against the US dollar, eventually trading as low as 1.2915 before bouncing back to its current level of 1.2930.
After hitting a four-month high at 80.37 during evening trading yesterday, the USD/JPY dropped more than 50 pips during the Asian session to trade as low as 79.83. The pair currently stands at 79.90.
Gold also resumed its downward trend during Asian trading. The precious metal fell by close to $14 an ounce throughout the night, and is currently trading just above the psychologically significant $1700 level.
Main News for Today
US Advance GDP- 12:30 GMT
• The US economy is forecasted to have grown 1.9% in the third quarter of this year
• Should today’s news come in above 1.9%, the dollar may be able to recover last night’s losses against the JPY before markets close for the weekend
Read more forex news on our forex blog
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