US DOLLAR RISES AS GERMAN AUCTION CONFİRMED PROBLEMS OF EU

The US dollar rose today as the German bond auction could be considered a disaster, fueling fears of the European debt contagion, while the US economy showed the signs of recovery.

Germany auctioned its debt today and missed its maximum target by 35 percent, sending yield higher and reinforcing the negative outlook for the future of the European economy. Economists explained that the bad outcome of the auction doesn’t mean that the German economy is bad, but rather shows that investors are reluctant to deal with any European economy, even such powerful as Germany. The fundamental data from Europe was mixed today, making it hard to asses the state of Europe’s economic health.

BRAZİLİAN REAL DROPS ON CHİNA’S MANUFACTURİNG

The Brazilian real fell today, while yesterday it was at the seven-week low, as the report showed that China’s manufacturing is slowing.

HSBC Flash China Manufacturing PMI fell to 48.0 in November from 51.0 in October. The reading below 50.0 indicates a decline of the industry. The surging borrowing costs of the European nations add to the reasons that deter investors from buying the riskier currencies, like the real.

POUND REMAİNS WEEK AS CONFİDENCE REACHES RECORD LOW

The Great Britain strengthened a little yesterday as the retail sales rose last month, but the currency hasn't been able to retain its upward momentum and currently moves without a clear direction.

The volume of the UK retail sales increased 0.6 percent in October from September, following the 0.5 percent increase in the preceding month. That’s much better than market expectations of a 0.2 percent drop. The value of the sales rose 0.7 percent. The report noted that small stores performed better than larger ones.

RİNGGİT REMAİNS LOWER EVEN AS RİSK AVERSİON EASES

The Malaysian ringgit remains down on today’s trading session even as good news from Europe eased risk aversion sentiment among Forex traders.

Pessimism ruled the Forex market at the start of the session as Spain’s borrowing costs surged.