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The Opening Bell: Where currencies start for Wednesday, December 19, 2012

Posted in Currencies

By Dan Bell

The NZD/USD opens lower at 0.8415 this morning, with the overnight low being 0.8399.

The EUR/USD surged to 7 ½ month high on optimism that progress is being made to avoid the US ‘fiscal cliff’. 

Any deal is viewed as being positive for risk-taking and negative for ‘safe-haven’ assets such as Gold and the USD.

World equity markets were up strongly. The US indices climbed between 0.8% and 1.2%, and the UK and European indices rose 0.4% to 0.6% on the day.

Gold prices fell more than 1% to trade at USD$1666, and Copper prices consolidated recent gains to close at USD$8,045. Other metals prices were generally higher.

The NZD opens at 0.8415 USD, 0.7990 AUD, 0.6360 EUR, 0.5175 GBP, & 70.85 JPY.

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NZ Current Account will be released at 10:45am today, followed by GDP & Business Confidence figures Thursday. However, the major focus and driver of the markets will remain on US fiscal cliff developments.

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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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1 Comments

Risk = ON Donate your

Risk = ON
Donate your stockpiled canned food to the salvation army.