The euro recorded loses against most of its major counterparts as the Sentix Investor Confidence index came out much worse than expected. The media attention is now concentrated on Spain, following the disappointing bond auction last week and the rising bond yields that ensued. The nation announced an ambitious budget deficit target for 2012 at 5.3%. European Central Bank (ECB) member Ordonez dismissed suggestions that Spain might have to leave the eurozone, labeling them unreasonable. A slightly better than expected French Industrial Production for February was not enough to improve the negative market sentiment. Against the US dollar, the single currency dropped to 1.3071 from 1.3108. Versus the Swiss franc, the euro closed at 1.2013 and even though the Swiss National Bank (SNB) stipulated that it will defend its 1.20 floor at any cost, the market appears not convinced.

The US dollar produced gains versus a basket of currencies as renewed woes in the eurozone area accompanied by an unsatisfactory Non-Farm payrolls (NFP) figure on Friday, heightened risk aversion. Versus the Canadian dollar, the US dollar advanced to 1.0049 from 0.9966. Against the Japanese yen, the greenback dived to 80.67 from 81.64, recording a five week low. Bank of Japan Governor Shirakawa pointed out that the central bank’s policies should not be linked directly to short-term market movements.

The Australian dollar dropped to 1.0277 from 1.0307 against the US as fears on global growth resurfaced. The British pound fell as well against the greenback, retracing to 1.5852 and from 1.5906.

Oil prices dropped to 100.60 from 102.01 dollars a barrel. Gold rose to 1657.26 from 1642.98 US dollars an ounce. Against the euro, gold advanced to 1268.86 from 1251.54 euro an ounce. Silver remained flat around 31.61 dollars an ounce.

OutlookPivotPreference1Sentiment2
EURUSD1.3135LONG @ 1.312560% of deals buy EUR
USDJPY81.20LONG @ 81.2080% of deals buy USD
GBPUSD1.5890LONG @ 1.589048% of deals buy GBP
AUDUSD1.0290LONG @ 1.029070% of deals buy AUD
GOLD1646LONG @ 164666% of deals buy GOLD
OIL103.35SHORT @ 103.3590% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
CAD12:15House Starts for March
200k
USD14:30Crude Oil Inventories
2.1 mil
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EquitiesEUROPEUSASIA3
FTSE 100-2.24%S&P 500-1.71%NIKKEI-0.61%
DAX-2.49%DJIA-1.65%HIS-1.15%
CAC-3.08%NASDAQ-1.83%CSI 300-0.15%
3 at the time of writing