The euro slid against its major counterparts yesterday as fears about a global economic slowdown intensified. Following China’s poor factory activity figures, manufacturing data from the eurozone’s two largest economies further boosted risk aversion. Purchasing Managers’ surveys revealed yesterday that manufacturing in France and Germany unexpectedly fell this month. World equities turned negative and worries about risks to global growth pushed high yielding assets such as the Australian dollar lower. Against the dollar, the single currency dipped to 1.3133 from 1.3253 and later bounced back to trade at 1.3212. Against the Japanese yen, the euro hit a one-week low at 108.48 from 110.46, a decline of 1.8%.

The US dollar appeared strong yesterday supported by a heightened appetite for the safe haven currency Against the Japanese yen, fell to 82.32 from 83.46 after Japanese data showed an unexpected trade surplus supported the yen. Initial Jobless are still trending lower showing further signs of an improved jobs sector.  Against the Canadian dollar, the dollar jumped above parity level rising as high as 1.0008 from 0.9911. Focus turns to the Canadian inflation data expected later today.

The Australian dollar tumbled against the US dollar on heightened concerns about a global economic slowdown. Yesterday’s poor factory activity figures from China and weak data from Germany and France raised fears that the eurozone may not avoid recession. The pair dropped to 1.0336 from 1.0483 weighed by investors’ lower appetite for high yielding currencies.

Oil prices plummeted to 104.49 dollars a barrel from 107.10, a decline of 2.4%. Gold also fell to 1628.10 dollars an ounce from 1656.25 but later recovered to trade at 1648.60. Against the euro, gold fell to 1237.83 from 1250.77 an ounce. Silver ticked lower to 31.10 dollars an ounce from 32.33. Stay in tune throughout the day with !

 

 

OutlookPivotPreference1Sentiment2
EURUSD1.3210SHORT @ 1.321034% of deals buy EUR
USDJPY83.00SHORT @ 83.0048% of deals buy USD
GBPUSD1.5840SHORT @ 1.584033% of deals buy GBP
AUDUSD1.0420SHORT @ 1.042064% of deals buy AUD
GOLD1650.00SHORT @ 1650.0063% of deals buy GOLD
OIL105.80SHORT @ 105.8070% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
CAD11:00Consumer Price Index0.4%
USD14:00New Home Sales0.325M
EquitiesEUROPEUSASIA3
FTSE 100-0.79%?S&P 500-0.72%?NIKKEI-1.14%?
DAX-1.27%?DJIA-0.60%?HIS-1.34%?
CAC-1.56%?NASDAQ-0.39%?CSI 300-0.98%?
3 at the time of writing