The greenback was much weaker versus its peers just a few hours ago, but it seems that these losses are starting to be reversed, as there is a lot of volatility which is currently in the markets at the moment. The GBP/USD pair is currently higher by 0.02 percent at $1.6041. However, the dollar has slumped versus the Aussie.
The European single currency was stronger just an hour ago, but it seems that these gains have been reversed only recently. The EUR/USD pair is trading lower at the moment by 0.02 percent at the $1.2971 level. The reality is that the weak European economic figures from yesterday may be taking their toll, as traders realize that the euro may be a touch overvalued this Thursday. The euro has also lost ground against the pound.
The yen is one of the weakest currencies this morning, but its losses may not necessarily be prolonged. It has fallen due to there being the forecast of further stimulus from the Bank of Japan at its policy meeting next week and due to the Asian stock market rally leading traders to ditch the yen. The USD/JPY pair is up today by 0.2 percent at 79.97 yen.
The price of crude oil tumbled on Wednesday, adding to the weak prices which we have seen from the black gold yesterday. The reason for crude’s decline yesterday was the fall in fuel demand in the U.S. and stockpiles rising over three times the 1.8 million barrels forecast. In addition, traders had a lack of risk appetite yesterday when it came to the leading commodities. This is because they foresee more bearishness in the days ahead. They want oil to be cheap enough, so it will be worth it to open positions in the energy. The reality is that crude is one of the weakest commodities at the moment. However, it is trading higher this Thursday morning by 13 cents at the $85.86 level.
The price of gold fell a lot yesterday, sliding below the $1,700 mark for the first time since July. The precious metal has become very bearish in recent trading weeks, as traders foresee there to be further declines on the horizon. The fact of the matter is that gold futures were much stronger three weeks ago. However, traders may continue selling gold until they are of the view that it is cheap enough to purchase again. The precious metal is actually higher this morning by $5.75 at $1,707.35.