The euro dropped against a basket of currencies and world equities turned negative following the release of the FOMC minutes. The minutes from the Fed’s March monetary policy meeting dimmed expectations for a third round of quantitative easing by the Fed. Against the dollar, the single currency slid to 1.3181 from 1.3367, a 1.4% decline. Against the Japanese yen, the euro dropped to 108.96 from 109.81. Focus now turns to the European Central Bank Interest Rate Decision which is expected to keep rates unchanged at 1%. Investors’ real focus will be on the following press conference by the ECB President Draghi at 12:30 GMT.

The US dollar strengthened against its major counterparts after the expectations for further stimulus by the Fed faded following the FOMC minutes which revealed a hawkish tone. Recent economic data from the US showed signs that the US economy is recovering and a strong Non Farm Payrolls report on Friday may further confirm the view that the US economy has entered the road to recovery. Against the Japanese yen, the greenback jumped to 82.99 from 81.55. Eyes now turn to the ADP Employment Change and ISM Non-Manufacturing data expected later today.

The Australian dollar dropped today against the US dollar weighed by a stronger dollar and Australia’s trade deficit. The country produced a trade deficit of 480 million Australian dollars, adding to fears about the strenghth of Australia’s economy. Versus the greenback, the Aussie declined to 1.0259 from 1.0466.

Oil prices dropped to 103.38 dollars a barrel from 105.14. Gold slid to 1634.41 dollars an ounce from 1680.90, a 2.8% fall. Against the euro, gold fell to 1243.80 from 1259.58 an ounce. Silver plummeted to 32.12 dollars an ounce from 33.27. Stay in tune throughout the day with !

OutlookPivotPreference1Sentiment2
EURUSD1.3245SHORT @ 1.323552% of deals buy EUR
USDJPY82.40LONG @ 82.4540% of deals buy USD
GBPUSD1.5930SHORT @ 1.592051% of deals buy GBP
AUDUSD1.0345SHORT @ 1.34077% of deals buy AUD
GOLD1663.00LONG @ 1663.0077% of deals buy GOLD
OIL104.30LONG @ 104.3077% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
EUR11:45ECB Interest Rate Decision1%
USD12:15ADP Employment200k
USD14:00ISM Non Manufacturing57.0
EquitiesEUROPEUSASIA3
FTSE 100-0.26%?S&P 500-0.40%?NIKKEI-2.29%?
DAX-0.58%?DJIA-0.49%?HIS1.31%
CAC-0.78%?NASDAQ-0.20%?CSI 3000.48%
3 at the time of writing