The euro edged higher in quiet Asian trade after a long weekend. Focus remains on the eurozone debt problems as well as on US economic data. Investors expect Italy and the three-year and ten-year government bond auction this week and a successful auction could support the single currency. Versus the greenback, the single currency edged as high as 1.3081 yesterday and today the pair rose to 1.3069.

The US dollar was trading in a tight range against a basket of currencies in thin holiday trade. Attention shifts to Home Price Index, Consumer Confidence and Fed Manufacturing and investors will be looking for positive signs that the US economy is recovering. Versus the Japanese yen, the greenback fell to 77.87 from 78.10. Japanese Finance Minister Azumi said that the strong yen was responsible for weak exports in the fourth quarter and expressed optimism that the Japanese currency would return to levels that will reflect the real state of the economy.

The British pound rose today to 1.5702 from 1.5596 as thin markets resulted in sharp moves. The UK government borrowing costs fell to their lowest level since 1890 reflecting concerns that the UK economy may be falling back into recession.

Oil prices fell to 99.27 dollars a barrel from 100.19. Gold dipped to 1591.22 dollars an ounce from 1611.68. Silver edged lower to 28.70 dollars an ounce from 29.45.

OutlookPivotPreference1Sentiment2
EURUSD1.3100SHORT @ 1.310057% of deals buy EUR
USDJPY78.10SHORT @ 78.1068% of deals buy USD
GBPUSD1.5660SHORT @ 1.566055% of deals buy GBP
AUDUSD1.0120LONG @ 1.012045% of deals buy AUD
GOLD1603.00SHORT @ 1603.0067% of deals buy GOLD
OIL98.40LONG @ 98.4021% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
USD14:00Home Price Index in October-3.2%
USD15:00Consumer Confidence in December58.3
USD15:00Fed Manufacturing Index in December5
EquitiesEUROPEUSASIA3
FTSE 1000.31%S&P 5000.90%NIKKEI-0.46%?
DAX0.46%DJIA1.02%HIS1.37%
CAC0.99%NASDAQ0.74%CSI 300-1.31%?
3 at the time of writing