Greek leaders losing momentum

The euro lost some ground against most of its major counterparts as Greek political leaders appear to be losing momentum on finalising the coalition government details. The announcement for the new Prime Minister, expected last night, has been postponed for today. EU Commissioner Oli Rehn said that the 6^th tranche of aid might still be paid by late November, however for this to happen the new Greek government must express its commitment to the conditions of the 2^nd rescue package. The EU states Finance Ministers meeting today will be closely monitored worldwide. Versus the US dollar, the single currency dropped to 1.3758 from 1.3794. Against the Swiss franc, the euro rose to 1.2403 from 1.2273 as the growing negative effects of the strong franc start to be priced in by investors. The Swiss National Bank Chairman Hildebrand will be the centre of attention in a panel discussion in Berlin at 13:00 GMT.

The US dollar produced mixed results against a basket of currencies as headlines from Europe failed to provide investors with any guidance for direction. Against the Swiss franc, the US dollar rose to 0.9014 from 0.8898. Against the Japanese yen, the greenback dropped to 78.11 from 78.07 amid increasing views that the intervention was ineffective in changing the trend.

The Australian dollar dropped to 1.0360 from 1.0405 against the US dollar, as the Trade Balance for September came out worst than expected. The British pound advanced to 1.6063 from 1.6034, against the US dollar. This came after the House Price Index, considered a leading indicator of the housing industry's health, came out better than expected.

Oil prices rose to 95.41 dollars a barrel from 94.47. Gold advanced higher to 1793.20 dollars an ounce from 1759.75. Silver followed suit rising to 34.9225 dollars an ounce from 34.2625.

¹data generated by Trading Central™, ²data obtained from easy-forex Inside Viewer™

³at the time of writing

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