Today's US GDP report forecasts to show the contraction in the US to slow down, spurring investors to sell the greenback against the euro.
- The sterling is holding strong against the US dollar after a UK report showed consumer confidence held at the highest level since April 2008.
- Looking at the Japanese yen, it is set for a third weekly fall against the Australian dollar as global stocks rose on Thursday causing investors to seek higher-yielding assets.
- Putting the above together we can speculate the bias for the US dollar and the yen to be sold further on improved risk appetite.Â The fx market is still strongly influenced by the health of global stocks, which in turn have been rallying as better-than-estimated results have been coming in from corporations in the US and Japan.
- Both Sony and Motorola strong results reported yesterday boosted the US and Japanese stocks to the highest level this year.
Currency to watch out for: EURUSD & GBPUSD
- The EURUSD pivot point is at 1.4085 with a preference to enter into long positions at 1.4095
- The GBPUSD pivot point is at 1.6510 with a preference to enter into long positions at 1.6520
Today's calendar and market movers:
- EU Unemployment Rate expected to rise to 9.7%
- Canada GDP month on month expected to drop to -0.4%
- US Advance GDP quarter on quarter expected to rise to -1.4%
- US stocks finished higher yesterday with the Dow up 0.9%, S&P up 1.2% and the NASDAQ up 0.8%
- As of 06:00 GMT the Nikkei is at 1.74% and the Hang Seng at 1.77%