The euro edged higher yesterday while world equities turned positive as risk appetite dominated the markets. A higher than expected demand for Spain’s government bonds pushed Spanish yields lower, a positive sign for a country whose borrowing costs almost doubled one month ago. Risk sentiment was also boosted after big US companies posted quarterly profits and after German ZEW Economic Sentiment showed a higher than expected figure. Against the dollar, the euro rose to1.3172 from 1.3090.

The US dollar weakened against a basket of currencies weighed by improved economic data which raised investors’ demand for high yielding currencies. Against the Japanese yen, the greenback rose as high as 81.42 from 80.36 following industrial production in Japan which dropped in February. Yen was also weighed by a report which showed that the Bank of Japan may raise its inflation forecasts, raising speculation for addition monetary stimulus to achieve its price target. Against the Canadian dollar, the dollar plummeted after the Bank of Canada said that the economy is improving signaling that interest rates may be raised soon. The hawkish statement sent the pair as low as 0.9864 from 1.0011.

The British pound jumped versus the US dollar to 1.5970 from 1.5862 after data showed inflation jumped as expected in March reinforcing expectations that the Bank of England will not add more stimulus into the economy. Eyes now turn to the Bank of England policy meeting minutes and what would be interesting to see is whether the bank of England will soften its dovish tone for monetary policy. Investors are also expecting the UK’s jobs figures to be released later today.

Oil rose to 105.04 dollars a barrel from 102.64. Gold dropped to 1634.59 dollars an ounce before rebounding to 1657.30. Gold edged lower to 1256.69 euro an ounce from 1257.05. Silver jumped to 31.89 dollars an ounce from 31.32. Stay in tune throughout the day with !

 

OutlookPivotPreference1Sentiment2
EURUSD1.3090LONG @ 1.309551% of deals buy EUR
USDJPY81.05LONG @ 81.1065% of deals buy USD
GBPUSD1.5900LONG @ 1.590530% of deals buy GBP
AUDUSD1.0345LONG @ 1.034543% of deals buy AUD
GOLD1634.00LONG @ 1634.0069% of deals buy GOLD
OIL103.90SHORT @ 103.9044% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
GBP08:30Unemployment Rate8.4%
GBP08:30Unemployment Change7K




EquitiesEUROPEUSASIA3
FTSE 1001.78%S&P 5001.55%NIKKEI2.14%
DAX2.65%DJIA1.50%HIS1.19%
CAC2.72%NASDAQ1.82%CSI 3002.16%
3 at the time of writing