The euro recorded losses against most of its major counterparts, ahead of the Economic and Financial Affairs Council (ECOFIN) meeting today. The central issue to be discussed by the eurozone Finance Ministers concerns the combined lending capacity of their big bazookas. Both, the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM) are at their disposal and market participants will anticipate for details throughout the day on how these rescue funds are going to be boosted. Against the US dollar, the single currency dropped to 1.3313 from 1.3324.
The US dollar produced gains versus a basket of currencies as risk appetite remained limited. Jobless claims came out lower than previous month but above expectations, while 4th quarter GDP remained unrevised at 3.0%. Against the Japanese yen, the greenback dropped to 82.29 from 82.84, as the month-end Japanese fund repatriations – needed for closing the books – heightened buying pressure for the yen. Versus the Swiss franc, the US dollar rose to 0.9054 from 0.9044.
The Australian dollar decelerated its fall opening at 1.0390 and closing at 1.0373 against the US dollar. The British pound rebounded against the greenback, rising to 1.5957 and from 1.5891; even as the Bank of England announced that mortgage approvals fell in February.
Oil prices opened at 105.21 and closed at 102.95 dollars a barrel, recording a 6-weeks low at 101.79. Gold dropped to 1661.36 from 1664.85 US dollars an ounce. Against the euro, gold hovered around 1249 euro an ounce. Silver rose to 32.2108 from 32.1580 dollars an ounce.
|EURUSD||1.3310||LONG @ 1.3320||31% of deals buy EUR|
|USDJPY||82.50||LONG @ 82.45||58% of deals buy USD|
|GBPUSD||1.5935||LONG @ 1.5945||26% of deals buy GBP|
|AUDUSD||1.0360||LONG @ 1.0365||68% of deals buy AUD|
|GOLD||1654||LONG @ 1654||70% of deals buy GOLD|
|OIL||105.80||SHORT @ 105.80||83% of deals buy OIL|
|EUR||06:00||German Retail Sales m/m for February||1.2%|
|CAD||12:30||GDP m/m for January||0.1%|
|USD||12:30||Core PCE Index m/m||0.1%|
|FTSE 100||-1.15%||S&P 500||-0.16%||NIKKEI||-0.31%|