The euro (EUR) rebounded against its major counterparts yesterday supported by surprisingly firm earnings from US companies including Apple which reported almost double quarterly earnings. World equities turned positive as sentiment in the market stabilized. Successful bond auctions in eurozone countries sent the Italian, Spanish and Dutch government bond yields lower. The single currency remains fragile as political uncertainty in the eurozone continues following the resignation of the Dutch prime minister and his cabinet and the first round of the French presidential vote. Versus the dollar, the euro climbed as high as 1.3217 close to a three-week high from 1.3144.

The US dollar (USD) weakened against a basket of currencies as an improved risk appetite spurred a lower demand for the safe haven currency. Against the Japanese yen (JPY), the greenback rose as high as 81.55 from 80.85. Investors are expecting the Interest Rate decision by the Bank of Japan this week which is expected that it may extend its asset purchasing program to support the economy. Focus shifts to the Federal Reserve Interest Rate Decision today. It is expected that rates will remain unchanged at 0.25% but investors will be closely watching for any signs of another round of quantitative easing. The Fed’s following press conference at 18:15 GMT will be of great importance as an assessment of the US economy is expected considering last month’s poor Non Farm Payrolls data. US Durable Goods orders data is also due today.

The British pound (GBP) continues to trade around a six-month high versus the US dollar rising to 1.6163 from 1.6109. Attention is now on the UK first quarter Gross Domestic Product which is expected to show whether the UK economy escaped recession. Analysts expect a 0.1% growth after shrinking 0.3% in the last quarter.

Oil edged higher to 104.08 dollars a barrel from 102.78. Gold (XAU) rose to 1648.70 dollars an ounce from 1633.90 and against the euro it edged lower to 1244.41 euro an ounce from 1245.66. Silver (XAG) jumped to 31.10 dollars an ounce from 30.67. Stay in tune throughout the day with !

 

OutlookPivotPreference1Sentiment2
EURUSD1.3160LONG @ 1.316535% of deals buy EUR
USDJPY81.15LONG @ 81.2564% of deals buy USD
GBPUSD1.6100LONG @ 1.610517% of deals buy GBP
AUDUSD1.0275LONG @ 1.027558% of deals buy AUD
GOLD1637.00LONG @ 1637.0073% of deals buy GOLD
OIL103.05LONG @ 103.0555% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
GBP08:30Gross Domestic Product0.1%
USD12:30Durable Goods Orders-1.5%
USD14:00Fed Interest Rate Decision0.25%
EquitiesEUROPEUSASIA3
FTSE 1000.78%S&P 5000.37%NIKKEI0.98%
DAX1.03%DJIA0.58%HIS-1.50%?
CAC2.29%NASDAQ-0.30%?CSI 3000.78%
3 at the time of writing