The euro is trading at $1.4620 and at £0.7466.
For live currency updates, check the right-hand column of the Finfacts home page.
Commodities
Crude oil for March delivery is trading on the New York Mercantile Exchange (Nymex) at $87.78 per barrel, up 79 cents overnight. In London, Brent is trading on the International Commodities Exchange at $87.42 down 80 cents.
The oil price has been under pressure because of recession fears.
Gold spot price
The spot price of gold is at $892.50 per ounce, up $7.70s overnight in New York.
Mark O'Byrne, Director of Gold Investments Ireland, commented on Wednesday:
Gold surged on the news of the emergency Federal Reserve 0.75% interest rate cut to 3.5% prior to the opening of markets in New York. Gold had briefly fallen to just below $850 per ounce in trading late in Asia before surging to over $890 (or some 4.7% from the low of the day to the close in New York). Similarly silver fell as low as $15.40 prior to surging to $16.15. Then gold was up $7.90, or nearly 1 percent, to $889.80 an ounce in trading in New York and silver was down 7 cents to $16.02 per ounce. Both subsequently traded sideways in Asia overnight and have fallen marginally in early European trading.
The London AM Fix at 1030 GMT this morning was at $887.80 (up from $862 on yesterday). Gold surged in all major currencies and to near record highs in GBP and EUR and fixed at £453.50 (up from £442.59 yesterday) and €609 (up from €595.22 yesterday).
As we anticipated the Federal Reserve cut interest rates sharply despite significant inflationary pressures and this led to another sharp decline in the dollar and this combined with safe haven demand led to gold’s strong performance again yesterday. This morning the dollar has weakened marginally against the pound and the euro (1.955 and 1.4586) and oil has again weakened (down 1.7% to $87.70 <NYMEX February>) which is likely the reason for gold’s slight sell off in early European trading. Profit taking in the short term may be expected after yesterday’s surge in price.
But the recent rally in stock markets and indeed in the dollar will unfortunately likely be another dead cat bounce and both the dollar and major industrial equity markets appear to be in secular bear markets. U.S. stock markets did recover from their sharp lows but still fell for the day. Asian stock markets were mixed but generally up and European stock markets have again sold off this morning.
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