FOREX
The euro is recording gains versus all other major currencies, hitting a four-month high versus the US dollar as the European summit goes into extra-time. The leaders of the 27 countries, divided in two blocks with each defending opposing views over the size and shape of a proposed recovery fund, embarked on marathon talks on Friday to decide the future of the package. No agreement has been reached so far but the unusual extension of the discussions into Monday indicates a willingness by the two opposing camps to reach a consensus which, if grasped, could help create a more optimistic outlook for the euro and the Union itself.
Dollar Index
Ricardo Evangelista – Senior Analyst, ActivTrades
GOLD
Gold has started the week in green once again with the spot price holding resolutely above $1,800. This confirms investors’ huge interest for the yellow metal, while volatility remains low.
The price is less than $10 from the 9-year-peak reached last week at $1,818. A clear breakout above this level could open space for further rallies, while at this stage there are no correction signals as investors continue to buy gold to cover their portfolio against the risk of new falls on stock markets.
Carlo Alberto De Casa – Chief analyst, ActivTrades
