EURUSD fell off six-week highs as uncertainty ruled in the markets today after the EcoFin (European finance ministers) meeting was cancelled tomorrow, leading to speculation that the meeting details were not ready and would result in further delays in a crisis plan.Investors lost confidence for a finalized plan by tomorrow to resolve the euro zone debt crisis and agree on Greek bond haircuts as well as EFSF expansion. EURUSD fell to 1.3848 after the news from an early US session high of 1.3952. The focus is on the EU Summit of leaders of the 27 member countries.
GBPUSD hit a fresh six-week high at 1.6036 in early New York trading, benefitting from the elevated market sentiment from the morning European session. However sentiment soon faded and flight from risk ensued after news of the cancellation of the EcoFin meeting tomorrow. Cable dipped to as low as 1.5955.
The Canadian dollar weakened by over 2 percent against its U.S. counterpart on overall risk aversion today, which was worsened after the Bank of Canada gave a dim outlook on growth. Meanwhile, Canada’s major trading partner, the U.S. released negative data on consumer confidence and manufacturing, so this spills over to the Canadian economy. USDCAD rose over 220 pips to 1.0211 from 0.9990.
USDJPY touched a fresh all time low in NY trading as demand for safe haven sent the yen higher amid uncertainty on the outcome of the EU Summit on Wednesday and concerns over the euro zone debt crisis. Also the dollar plummeted after US data showed consumer confidence unexpectedly fell in October to the lowest level since March 2009. The pair broke through the psychologically important 76.00 support level to drop to a record low of 75.73. EURJPY continues to trade sideways in a range for almost a week now, between 105.25 and 106.30.
Gold prices rose more than 3 percent today as stock markets fell and uncertainty over Europe and poor US economic data dampened risk appetite. The precious metal was in demand again as a safe haven asset after recently trading along with other commodities. It rose to its highest level in more than a month, hitting $1,708.84.