The euro recorded gains against most of its major counterparts, as the German IFO business climate index surprisingly clocked an 8-month high at 109.8. Last week the European Central Bank (ECB) President Draghi shared his belief that we have seen the worst of the eurozone crisis. Following these comments, this week’s central theme is the decision due on Friday, concerning the way and the size by which eurozone's rescue funds will be boosted. Market consensus expects that the lending capacity of both the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM) will be raised to EUR 940 billion. Against the US dollar, the single currency jumped to 1.3356 from 1.3283.

The US dollar produced losses versus a basket of currencies as a speech by Federal Reserve Chairman Bernanke hinted to additional quantitative easing. The nation’s central bank head reiterated their plan to keep interest rates near zero until at least 2014. Bernanke cited high unemployment and considerable downside risks, adding that continued accommodative policy will be needed to foster growth. Against the Japanese yen, the greenback rose to 83.01 from 82.58. Versus the Swiss franc, the US dollar dropped to 0.9030 from 0.9073. Federal Reserve Chairman Bernanke reversed market sentiment with his speech yesterday and as he is due to deliver a lecture later today at 16:45 GMT, investors are expected to be cautious of another occurrence of the Bernanke effect.

Oil prices rose to 106.70 from 106.39 dollars a barrel. Gold advanced to 1688.87 from 1668.43 US dollars an ounce. Against the euro, gold jumped to 1265.11 from 1252.18 an ounce. Silver rose to 32.71 from 32.21 dollars an ounce.

OutlookPivotPreference1Sentiment2
EURUSD1.3280LONG @ 1.329026% of deals buy EUR
USDJPY82.55LONG @ 82.6044% of deals buy USD
GBPUSD1.5915LONG @ 1.592521% of deals buy GBP
AUDUSD1.0495LONG @ 1.049544% of deals buy AUD
GOLD1669LONG @ 166962% of deals buy GOLD
OIL106.10LONG @ 106.1049% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
EUR07:00German Import Prices m/m for February
0.9%
GBP11:00CBI Distributive Trades for March
-6
USD14:00Case Schiller 20 m/m for January
-0.6%
EquitiesEUROPEUSASIA3
FTSE 1000.82%S&P 5001.39%NIKKEI2.36%
DAX1.20%DJIA1.23%HIS1.74%
CAC0.74%NASDAQ1.78%CSI 3000.00%-
3 at the time of writing