Euro rebounds from a two week low
- The euro ticked higher today versus the US dollar supported by talks that Asian central banks are willing to buy the single currency to diversify their portfolios. Surprisingly poor German Factory Orders data disappointed investors on Monday who are expecting a rate hike by the ECB. The data weighed on the euro dragging it as low as 1.3508 against the greenback. Today the pair recovered yesterday's losses and rose as high as 1.3635. Investors' eyes turn to the German Industrial Production data due later today for the same month when Factory Orders were poor.
- Sterling rose against the dollar on expectations that the Bank of England will lift the country's interest rates sooner than later. It appears that the market is pricing in the possibility of higher rates at Thursday's BoE interest rate meeting. The British pound climbed as high as 1.6162 dollars and towards a three month high at 1.6277.
- The Australian dollar rallied against the US dollar on Tuesday supported by higher Australian bond yields and rising commodity prices. The Aussie rose as high as 1.0159 dollars from 1.0172.
- Gold edged slightly higher at 1352.18 dollars an ounce but still under pressure from rising equities and recovery hopes that hurt demand for the safe haven metal.
Currency to watch out for: EURUSD & USDJPY
- § The EURUSD pivot point is at 1.3570 with a preference to enter into Long positions at 1.3580
- § The USDJPY pivot point is at 82.10 with a preference to enter Long positions at 82.15
Today's calendar and market movers:
- § Switzerland Unemployment Rate in January is forecasted to remain unchanged at 3.8%
- § Germany Industrial Production in December is forecasted to gain 0.2%
- § Canada's Housing Starts in January is forecasted to fall to 171K
US equities were positive on Monday with the S&P500 trading up 0.57% and the DJIA trading up 0.62%. The European bourses are also positive with the FTSE trading up 0.89%, the DAX trading up 0.93% and the CAC up 1.08%. The NIKKEI and the HSI at the time of writing are trading up 0.41% and up 0.22% respectively.
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