Euro surrenders gains in 2011's first trade
- The euro declined against a basket of currencies on Monday as investors' risk appetite lowered in the beginning of the new year. Euro zone debt problems appeared to resurface pushing the single currency lower against the dollar which fell as low as 1.3276. Thin trading conditions in the last week of 2010 helped the euro rise above the 1.34 level but lost most of its gains in 2011's first trade.
- Rising optimism over the US economic recovery helped push the dollar against the Swiss franc on Monday. The dollar rose as high as 0.9369 versus the franc from 0.9320. Against the Japanese Yen, the dollar rose to 81.36 from 80.93 but still below the 1.32 level.
- The euro plummeted against the Japanese Yen and Swiss franc as the euro zone debt crisis creates an uncertain environment and safe haven demand rises. Euro fell to 107.92 versus the Yen and to 1.2422 against the franc.
- The Australian dollar fell on Monday weighed by December's Manufacturing data in China that showed a continuing expansion but with a slowing momentum. China is Australia's largest trade partner and slowing momentum in Chinese Manufacturing activity can hurt the country's commodity exports.The Aussie slid against the dollar and stepped off a 28-year high at 1.0256 to trade at 1.0181 dollars.
- Gold rallied today as heightened risk aversion raises demand for safe haven bets. Gold rose as high as 1420.30 dollars an ounce today from 1413.95 an ounce.
Currency to watch out for: EURUSD & USDJPY
- § The EURUSD pivot point is at 1.3335 with a preference to enter into Short positions at 1.3325
- § The USDJPY pivot point is at 81.50 with a preference to enter Short positions at 81.45
Today's calendar and market movers:
- § Europe's Purchasing Manager Index Manufacturing in December is forecasted to rise to 56.8
- § US ISM Manufacturing in December is forecasted to rise to 56.9
US equities were mixed on Friday with the S&P500 down -0.02% and the DJIA up 0.07%. The European bourses are trading negative with the FTSE trading down -1.19% and the DAX and the CAC trading down -1.16% and -1.193% respectively. The NIKKEI and the HSI at the time of writing are trading down 1.12% and up 1.38% respectively.
Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. This report is provided by Easy-Forex® for informative purposes only. In no way it is a recommendation by Easy-Forex® for you to engage in any trade. It is your sole responsibility and you will have no claims with regards to this report against Easy-Forex®. If you do not agree to this, you are strongly advised not to use this report. Hence, Easy-Forex® shall not be held responsible for any outcome of trading decisions, in regards with this report or similar reports.