The euro recorded gains against most of its major counterparts as market sentiment improved. This came after Spain’s Prime Minister Rajoy shared his belief that the troubled nation will not require a bailout and that the budget deficit target is “unconditional”. Yesterday’s German bund auction was not fully subscribed as close to record low yields do not entice investors. Against the US dollar, the single currency rose to 1.3118 from 1.3070. Versus the Swiss franc, the euro closed at 1.2033 after chatter that the Swiss National Bank (SNB) is considering raising the floor at 1.25. Greece government announced that the upcoming elections will take place on May 6th.

The US dollar appeared softer versus a basket of currencies as fears about a Spanish bailout waned, enhancing risk appetite. Versus the Canadian dollar, the US dollar dropped to 1.0033 from 1.0048. Against the Japanese yen, the greenback rebounded to 80.99 from 80.68, after recording a five week low on Tuesday. Bank of Japan is under pressure for further easing but Governor Shirakawa pointed out that the central bank’s policies should not be linked directly to short-term market movements.

The Australian dollar jumped to 1.0318 from 1.0228 against the US dollar as better than expected labour data lessen concerns about global slowdown affect the nation’s economy.

Oil prices rose to 102.28 from 100.56 dollars a barrel. Gold rose to 1659.93 from 1657.25 US dollars an ounce. Against the euro, gold dropped to 1265.61 from 1268.91 euro an ounce. Silver remained flat around 31.6050 dollars an ounce for a second consecutive day.

OutlookPivotPreference1Sentiment2
EURUSD1.3085LONG @ 1.309552% of deals buy EUR
USDJPY81.20SHORT @ 81.2033% of deals buy USD
GBPUSD1.5880LONG @ 1.589030% of deals buy GBP
AUDUSD1.0325LONG @ 1.032546% of deals buy AUD
GOLD1652LONG @ 165265% of deals buy GOLD
OIL103.35SHORT @ 103.3555% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
AUD01:30Unemployment rate for March
5.3%
USD12:30Jobless Claims for past week
355k
USD12:30Core Producers Price Index m/m for March
0.3%
EquitiesEUROPEUSASIA3
FTSE 1000.70%S&P 5000.74%NIKKEI0.46%
DAX1.03%DJIA0.70%HIS0.61%
CAC0.62%NASDAQ0.84%CSI 3001.30%
3 at the time of writing