The euro rebounded during yesterday’s US session and world equities turned positive after positive economic data from China and the US eased fears about a global economic slowdown. The single currency remains under pressure as the eurozone problems still remains a concern. Italy’s jobless rate increased to the highest level in over a decade while the market is focusing on Spain and the latest austerity measures decided to control the country’s budget deficit. Against the dollar, the single currency slid to 1.3279 but later recovered to trade at 1.3355. Against the Japanese yen, the euro dropped to 108.68 from 111.14 as the yen jumped yesterday on safe haven demand. Focus now turns to the eurozone Gross Domestic Product and Producer Price Index.

The US dollar appeared weak yesterday as better than expected US Manufacturing Index spurred a higher risk appetite during the US session. Against the Japanese yen, the greenback slid to 81.55 from 83.30. Against the Canadian dollar, the dollar plummeted to 0.9888 from 0.9990, a 1% decline. Eyes turn to the FOMC minutes expected today at 18:00 GMT but no change in monetary policy expectations is expected. What is interesting to see is whether the Fed will signal further quantitative easing ahead of this week’s Non Farm Payrolls data. In the scenario where a more hawkish tone is revealed the dollar may find support as expectations for more easing may start to fade.

The Australian dollar dropped today against the US dollar following the Reserve Bank of Australia monetary policy meeting. As expected, RBA decided to keep interest rates on hold at 4.25% but Governor Stevens said the country’s economic growth is somewhat lower than estimated citing a weak housing market and a soft labor market. Yesterday the Aussie was supported by the Chinese PMI figures, which unexpectedly climbed signaling that the country’s manufacturing sector continues to expand. The pair dropped to 1.0389 from 1.0466.

Oil prices rallied to 105.44 dollars a barrel from 102.03, a 3.3% rise. Gold rose to 1683.36 dollars an ounce from 1662.80. Against the euro, gold rose to 1265.68 from 1250.39 an ounce. Silver ticked higher to 33.21 dollars an ounce from 32.33. Stay in tune throughout the day with !

 

OutlookPivotPreference1Sentiment2
EURUSD1.3305LONG @ 1.331536% of deals buy EUR
USDJPY82.25LONG @ 82.2064% of deals buy USD
GBPUSD1.6000LONG @ 1.601027% of deals buy GBP
AUDUSD1.0450LONG @ 1.043556% of deals buy AUD
GOLD1671.00LONG @ 1671.0068% of deals buy GOLD
OIL103.50LONG @ 103.5070% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
EUR09:00Gross Domestic Product-0.3%
EUR09:00Producer Price Index0.5%
EUR14:00Factory Orders1.5%
EquitiesEUROPEUSASIA3
FTSE 1001.85%S&P 5000.75%NIKKEI-0.32%?
DAX1.58%DJIA0.40%HIS0.45%
CAC1.14%NASDAQ0.91%CSI 3000.48%
3 at the time of writing