The euro recorded moderate gains against most of its major counterparts amidst thin trading, as bank holidays in France, Germany and Italy kept liquidity low. Spain is now the main point of attention for the media, as a disappointing bond auction last week gave fertile ground for numerous reports on the risks inherent in rising bond yields. The nation announced an ambitious budget deficit target for 2012 at 5.3%, which markets have met with skepticism. Against the US dollar, the single currency rose to 1.3107 from 1.3099.

The US dollar appeared softer versus a basket of currencies as market participants were still absorbing Friday’s worst than expected Non-Farm payrolls (NFP). Investors are now forced to weigh this - trend breaking – figure and try to foretell future policies by the Federal Reserve. Feb Chairman Bernanke showed an appetite in downplaying every single positive data release, prior to the latest NFP print, even hinting to a third round of quantitative easing. Against the Japanese yen, the greenback rebounded to 81.63 from 81.46, as Economy Watchers Sentiment came out better than expected at 51.8, previously at 45.9. Bank of Japan Governor is due to hold a press conference today and his statements will be carefully analyzed.

The Australian dollar had a flat day against the US dollar hovering below the 1.0300 mark. The British pound rose against the greenback, advancing to 1.5905 and from 1.5878; as Prime Minister Cameron travels to Tokyo in search of economic and political alliances.

Oil prices dropped to 102.00 from 102.45 dollars a barrel. Gold rose to 1642.16 from 1630.25 US dollars an ounce. Against the euro, gold hovered around 1250 euro an ounce. Silver fell to 31.6085 from 31.6940 dollars an ounce.

OutlookPivotPreference1Sentiment2
EURUSD1.3085LONG @ 1.308559% of deals buy EUR
USDJPY81.80SHORT @ 81.8075% of deals buy USD
GBPUSD1.5885LONG @ 1.588543% of deals buy GBP
AUDUSD1.0335SHORT @ 1.033570% of deals buy AUD
GOLD1633LONG @ 163358% of deals buy GOLD
OIL103.35SHORT @ 103.35086% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
EUR08:30Sentix Index for April
-8.1%
USD14:00Wholesale Inventories for February
0.5%
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EquitiesEUROPEUSASIA3
FTSE 1000.35%S&P 500-1.14%NIKKEI-0.09%
DAX-0.13%DJIA-1.00%HIS-1.07%
CAC0.19%NASDAQ-1.08%CSI 300-0.28%
3 at the time of writing