Forex Market Review- Swiss franc extends gains; EURUSD hovers at $1.30

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The euro has been hovering around the key $1.30 level all day taking a breather after a sharp fall on Wednesday to an eleven-month low. Market sentiment was more upbeat today beginning with a good Spanish bond auction in European trading where the Spanish Treasury sold double the amount that was targeted. By the North American session US markets were also upbeat after a decline in US jobless claims followed by manufacturing data signalling a strengthening economy. This provided some brief relief to markets from the uncertainty in Europe. EURUSD hit a session high of 1.3048 and low of 1.2980.

 

The dollar index which measures the greenback against a basket of six major currencies including the franc, fell to 80.292, compared to 80.538 in late North American trading on Wednesday. The US dollar edged down compared to Wednesday as improved risk appetite pushed investors away from the safe haven.

 

Sterling moved off its two month low of 1.5408 from Wednesday to climb to highs of 1.5528 in US trading.

Dollar dipped against the yen for the first time in three days, falling to 77.72.

USDCAD slid to a low of 1.0319 moving away from a one-month high hit on Wednesday.

 

Swiss franc was the biggest gainer today after the Swiss National Bank left the floor on the euro/franc unchanged at 1.20 francs per euro. The central bank also maintained its benchmark interest rate at near zero. The dollar moved off an eight month high of 0.9546 hit early this morning and slid to 0.9387 in the US session. The franc appreciated 1.3 percent to push EURCHF down to 1.2223.

 

Gold hovered around its lowest level since September 23 bottoming at $1,560.00 an ounce in New York trading. In one week gold prices have fallen by over 10 percent due to the stronger US dollar. Gold has an inverse relationship with dollar since it is priced in USD. Investors prefer to hold dollars now and sell gold.