The euro advanced yesterday recovering from a one month low versus the US dollar. The pair climbed to 1.3119 from 1.3003. Sentiment in the market has improved following upbeat economic data from the US, a formal approval of Greece’s second bailout and improved capital conditions in major US banks. Versus the Swiss franc, the single currency fell to 1.2064 yesterday from 1.2139 following the Swiss National Bank quarterly monetary policy assessment. The SNB decided to keep its monetary policy unchanged and will continue to enforce the minimum exchange rate of EURCHF at 1.20 Swiss francs.

The US dollar edged lower against a basket of currencies as US Treasury yields eased off five-month highs. Initial Jobless Claims data was released yesterday and fell to a four-year low while manufacturing and business conditions in the US showed an optimistic outlook for the US economic recovery. The US Treasury Secretary Timothy Geithner said during his speech yesterday that the US economy is growing and is more productive but faces important challenges such as rising oil prices. Against the Japanese yen, the dollar slid to 83.19 from 84.17. Focus now turns to the US inflation data as well as Industrial Production and Consumer Sentiment expected later today.

The Australian dollar rose against the greenback yesterday supported by a weak dollar and a heightened appetite for high yielding currencies. The pair jumped as high as 1.0554 from 1.0423.

Oil prices sharply fell to 103.78 dollars a barrel from 106.16 after a report said that Britain had decided to cooperate with the US in an agreement to release oil from government-controlled strategic reserves. Gold plummeted to 1666.44 dollars an ounce from 1635.68. Gold rose to 1271.39 euro an ounce from 1262.07. Silver ticked higher to 32.85 dollars an ounce from 31.93.

 

OutlookPivotPreference1Sentiment2
EURUSD1.3035LONG @ 1.303552% of deals buy EUR
USDJPY83.15LONG @ 83.1531% of deals buy USD
GBPUSD1.5680LONG @ 1.568046% of deals buy GBP
AUDUSD1.0465LONG @ 1.046537% of deals buy AUD
GOLD1648.00LONG @ 1648.0072% of deals buy GOLD
OIL106.70SHORT @ 106.7053% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
EUR12:30Consumer Price Index0.4%
EUR13:15Industrial Production0.4%
EUR13:55Consumer Sentiment Index76.0
EquitiesEUROPEUSASIA3
FTSE 100-0.08%?S&P 5000.60%NIKKEI0.06%
DAX0.92%DJIA0.44%HIS-0.01%?
CAC0.44%NASDAQ0.51%CSI 3001.14%
3 at the time of writing