Risk Appetite Wanes

Risk Appetite Wanes

The euro (EUR) is weakening against most of its major counterparts, as eurozone’s 3rd quarter Gross Domestic Product (GDP) came out at 0.2%, in line with expectations. On Wednesday, the Federal Open Market Committee (FOMC) minutes from their latest meeting, revealed that the 3rd round of quantitative easing (QE3) may intensify, as there are members within the group that believe more asset purchases will be required once the Operation Twists ends. The US Unemployment Claims came out higher than expected as the Consumer Price Index (CPI) print was 0.1% as anticipated.

The Australian dollar (AUD) is trying to rebound this morning after yesterday’s risk-off selling, and the same is true for the Japanese yen (JPY) and the British pound (GBP).

OIL is trading above the 85 US dollars (USD) a barrel level early in the EU session for yet another day. The Crude Oil Inventories release, yesterday, pushed the precious commodity price down to 85.09 from 86.73.

Gold (XAU) plunged versus the US dollar (USD) from 1725.77 as low as 1704.65 following th