Global currencies mixed as China cuts growth forecast

whether the outcome of the European Central Bank meeting tomorrow will help improve market sentiment and drive the single currency to higher ground.
The ECB will meet to address their rate and growth outlook together with a bond deal likely to at least cushion investors in the eurozone.
The euro area is still going to be a key driver for investors with a risk appetite as global sentiment keeps improving putting pressure on the dollar.
A number of central banks are set to meet this week in a number of meetings with the European Central Bank meeting being the main attraction.
The market continues to be sluggish with the euro taking a dip at US$1,3150 and stop loss order was pegged at US$1,30.
Favourable news will likely push the euro higher above US$1,33 as the ECB moves in to put an end to easy money.
Euro fluctuations are showing a general nervousness among investors as most investors are selling the euro on any rallies all because of market sentiment.
The euro rose by 0,5 percent to trade at US$1,3220 against the dollar and advanced against the sterling pound to touch 83,30 pence per euro. The dollar reversed earlier gains against the yen after China cut its growth forecast to 7,5 percent driving down Japanese equities pushing up the yen.
The yen became on the go currency in Asian trade as we continue to see some selling on the dollar on risk reduction ahead of the non-farm payroll data in the US.
The yen gained to trade at 81,44 against the dollar. The yen rose against the euro to trade at 107,70.
Fundamentals are currently dictating the market swings from the Federal Reserve meetings to Chinese data all driving down gains in the currency market.
In London the pound inched higher on Chinese slowdown as equities tumbled pushing investors to better ground not the dollar and not the pound.
The pound was trading at US$1,5865 against the dollar but fell against the euro as the single currency is buoyed by the ECB meeting as investors anticipate a better bondholders deal from the ECB.
Risk appetite has also been driving the euro against the pound as it touched 83,30 pence per euro.
The Swiss franc advanced against the dollar on concern the US economy not performing as expected and Chinese growth rate being cut to 7,5 percent.
There has been so much noise on the Chinese growth rate as it was lowered affecting equities.
The Swiss franc gained to touch US91,25c and rose further against the euro to trade at 1,2059.
Geopolitical issues are also driving the Swiss franc higher as the situation in Europe this week is turning into a political issue.
In the South Pacific, the Aussie dollar inched lower on concern that the Chinese economy is slowing down and also on rate outlook decision by the Reserve Bank of Australia as it currently stands at 4,25 percent.
According to a panel of economists in the policy committee, the RBA is likely to keep rates unchanged.
That put pressure on the Australian dollar as a fall in commodities dragged down the Aussie dollar a resource driven currency.
China is the biggest exporter of Australian raw materials. The Australian dollar fell to trade at US$1,0611 against the dollar but fell against the yen to trade 86,78.
South African markets
The rand was weaker after the Chinese cut their growth target to 7,5 percent as this dimmed demand for growth-related currencies and high-yielding assets.
The rand was lower trading at 7,556 to the dollar. Risk appetite is still out there supported by fundamentals as we keep seeing the rand trade in a range-bound despite that dip in demand for riskier assets and commodities.
The South African central bank has noted with great concern the size of the capital inflows that will continue to test the rand strength together with their policy structure.
Commodity markets
Gold rose earlier as it was facing resistance at US$1 699 an ounce but shrug off that test to reach US$1 710 an ounce but retreated to US$1 707,20 an ounce on concern China is slowing down.
That caused commodities prices tumble be it soft commodities or precious metals.
Crude oil continues to be driven by supply issues and geo-political as well as a global recovery.
Crude oil is trading in a range-bound at US$107,07 per barrel. The Norwegian krone has become a proxy best hedge buy on any dips in crude as the currency has risen by 6,5 percent on oil rally against the dollar.
The correlation of Norwegian krone and crude oil has attracted the attention of investors. The market will continue to see risk in the Middle East and that’s a premium for crude oil.
Crude oil rally will hurt global market performance given the prevailing market climate.