Forex: ‘Fiscal cliff’ already weighting on Wall St., dollar remains flat

FXstreet.com (Barcelona) - Wall St. has reverted its initial positive trend, buoyed after Cisco Systems surprised market participants posting unexpected gains in the third quarter. News caught the markets off guard, as prospects for Cisco peers such as Intel, EMC and IBM were quite gloomy.
But that upbeat kick off has soon died off, as the US ‘fiscal cliff’ has started to weight on traders, transforming profits into losses and turning the session into red.

The US dollar, gauged by the US Dollar Index, remains flat so far, consolidating around 81.10 after risk aversion and risk appetite was alternating in the predominance of the session.

Markets in Europe finished in negative ground, against a backdrop of rising social unrest reflected in general strikes in Spain, Greece and Portugal. The euro continues to trade in a congestion pattern centered in 1.2740, as rumors were insufficient to generate a noticeable move. The FTSE100 led the losses with 1.11% followed by the German DAX, 0.94% and the CAC40, 0.89%.

In the meantime, both WTI and Gold are trading firmly into the positive territory, climbing 0.81% and 028%, respectively.

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