The euro (EUR) dropped against its major counterparts yesterday as political uncertainty in France and the Netherlands raised fears about the eurozone. World equities turned negative and the single currency is under pressure following poor economic PMI figures from Germany and the eurozone, which concerns about a recession in the region. Risk aversion dominated the markets following the Spanish 10-year government bond yields jumping at around 6% while Manufacturing PMI’s revealed a weaker than expected economic activity. Against the dollar, the single currency fell to 1.3104 from 1.3209. Eyes are now on the Netherlands and its government bond auction later in the day. The Dutch Prime Minister is set to speak in parliament today following the collapse of the Dutch governing coalition.

The US dollar (USD) strengthened against a basket of currencies as risk aversion spurred a heightened demand for the safe haven currency. Against the Japanese yen (JPY), the greenback fell as low as 80.85 from 81.59. Investors are expecting the Interest Rate decision by the Bank of Japan this week and analysts argue that BoJ may decide on additional quantitative easing to support the Japanese economy. Against the Swiss franc (CHF), the dollar rose to 0.9171 from 0.9095. Focus now turns to the US Consumer Confidence and New Home Sales.

The Australian dollar (AUD) slid to a two-week low versus the US dollar falling to 1.0247 from 1.0382 following Australia’s Consumer Price Index figures. Data showed that inflation was significantly weaker than expected which raises expectations for an interest rate cut by the Reserve Bank of Australian next week. RBA policymakers said this month that they may consider lowering the country’s interest rates at the May 1 monetary policy meeting in a scenario where inflation is weak.

Oil edged lower to 101.81 dollars a barrel from 103.86. Gold (XAU) dropped to 1622.99 dollars an ounce from 1643.20 and against the euro it edged higher to 1245.63 euro an ounce from 1243.99. Silver (XAG) slid to 30.46 dollars an ounce from 31.69. Stay in tune throughout the day with !

 

OutlookPivotPreference1Sentiment2
EURUSD1.3180SHORT @ 1.317043% of deals buy EUR
USDJPY81.15SHORT @ 81.1067% of deals buy USD
GBPUSD1.6070LONG @ 1.608018% of deals buy GBP
AUDUSD1.0325SHORT @ 1.032568% of deals buy AUD
GOLD1640.00SHORT @ 1640.0070% of deals buy GOLD
OIL101.80LONG @101.8073% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
GBP08:30Public Sector Net Borrowing14.4B
USD14:00Consumer Confidence69.7
USD14:00New Home Sales0.1%
EquitiesEUROPEUSASIA3
FTSE 100-1.85%?S&P 500-0.84%?NIKKEI-0.78%?
DAX-3.36%?DJIA-0.78%?HIS-0.13%?
CAC-2.83%?NASDAQ-1.00%?CSI 300-1.54%?
3 at the time of writing