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Forex: USD mixed, stocks gain on hopes of fiscal cliff deal
FXstreet.com (Córdoba) - Even though details of a deal to avert
the fiscal cliff begin to emerge, the US dollar remains unaffected
while stocks rally. However, Obama said in a speech that a budget
deal is 'in sight', but not done yet because of negotiations over
the $100 billion in automatic spending cuts.
The EUR/USD continues to hover below the 1.3200 mark, set to close the day in negative ground, although is set to end 2012 with a net gain of 2.0%. The Cable pushed higher and reached a 10-day peak of 1.6273 before easing to the 1.6260 area, where it is up 0.6% on the day and 4.8% this year.
Meanwhile the USD/JPY is trading at 29-month highs around 86.60. The pair is on track to close the year with a gain of 12.65% to the delight of the BoJ that has expressed its intention to weaken the yen.
US stocks are broadly higher, although off highs as Obama's words failed to propel the risk-on rally. The DJIA is up 0.8%, the S&P gains 0.9% and the Nasdaq 1.21%.