The euro rose against a basket of currencies yesterday supported by a positive demand of the Italian bond auction. Risk appetite following the Italian auction raised demand for riskier assets. Against the US dollar, the euro jumped to 1.3212 from 1.3101 but today the pair eased weighed by the poor Chinese growth data released today. Versus the British pound, the single currency edged as high as 1.5984 from 1.5912.

The US dollar weakened against its major counterparts yesterday following the poor Jobless Claims data from the US. People applying for jobless benefits last week rose to a two month high raising fears about the US economic recovery. Against the Japanese yen, the dollar weakened to 80.73 from 81.12 but today the pair recovered to trade as high as 81.19. US Producer Price Index also disappointed the markets after it revealed a softer than expected figure. Today focus turns to the US Consumer Price Index data which is expected to fall which may put pressure on the dollar as lower inflation may increase expectations for further stimulus.

The Australian dollar dropped to 1.0380 from 1.0452 against a stronger US dollar after Chinese Gross Domestic Product figures disappointed investors who were expecting a strong growth. Figures showed that China’s economy grew 8.1% in the first year of 2012 below forecasts of 8.3%. China is Australia’s largest trade partner and any sign of economic slowdown from China weighs on the Aussie.

Oil prices jumped to 104.22 dollars a barrel from 102.17. Gold edged higher to 1680.03 dollars an ounce from 1650.40. Against the euro, gold climbed to 1272.82 from 1265.61 an ounce. Silver rose to 32.56 dollars an ounce from 31.41. Stay in tune throughout the day with !

EURUSD1.3130LONG @ 1.314041% of deals buy EUR
USDJPY81.20SHORT @ 81.2065% of deals buy USD
GBPUSD1.5915LONG @ 1.592527% of deals buy GBP
AUDUSD1.0305LONG @ 1.036044% of deals buy AUD
GOLD1660.00LONG @ 1660.0052% of deals buy GOLD
OIL102.35LONG @ 102.3568% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
USD12:30Consumer Price Index0.3%
USD13:55Sentiment Index76.2

FTSE 100-0.06%?S&P 5001.38%NIKKEI1.19%
CAC-0.07%?NASDAQ1.30%CSI 3000.39%
3 at the time of writing