The euro climbed over 140 pips from Friday's lows ahead of a report forecast to show European investor confidence rose to the highest level since July 2008.
- The European investor confidence is based on a survey of about 2,800 investors and analysts and the index is considered to be a leading indicator of economic health.Â If today's data is realized it would add to signs that the region's recession is easing.
- The 16-nation currency also advanced against the Japanese yen on expectations a German report will show factory orders expanded in July for a fifth month.
- Over the weekend, the G-20 finance chiefs pledged to maintain global stimulus measures, stating that it would be premature to start unwinding record-low interest rates and more than $2 trillion in fiscal stimulus.
- The AUDUSD advanced over 150 pips touching a high of 0.8538, the highest level since September 2008, after a report showed the nation's economic growth unexpectedly accelerated last quarter.
- Crude oil prices hold near $68 a barrel ahead of OPEC's meeting this Wednesday in Vienna.Â According to OPEC's President, who is also Angola's oil minister, the 12-member group will likely keep output quotas unchanged.Â In the past year oil prices has been very volatile, reaching $147 a barrel in July 2008 before diving to $32 a barrel in February.
- On Friday, The NFP report showed that US companies cut payrolls by 216,000 in August, fewer than economists had forecast and following a 276,000 reduction in July.Â The unemployment rate rose to 9.7% from 9.4%, the highest level in 26-years.
Currency to watch out for: EURUSD & AUDUSD
- The EURUSD pivot point is at 1.4285 with a preference to enter into long positions at 1.4295
- The AUDUSD pivot point is at 0.8470 with a preference to enter into long positions above 0.8470
Today's calendar and market movers:
- EU Investor Confidence expected to rise to -13.5
- German Factory Orders is expected to report a 2% gain in July after rising 4.5% in June.
- U.S. and Canadian banks will be closed in observance of Labor Day
- US stocks closed higher on Friday with the Dow up 1%, the S&P up 1.3% and the NASDAQ higher by 1.8%
- As of 06:10 GMT the Nikkei is trading at 1.33% and the Hang Seng at 1.37%