The euro (EUR) edged lower against the dollar yesterday falling to 1.3057 from 1.3140 before rebounding to 1.3136 during the US session. All eyes now turn to Spain’s bond auction and investors are concerned about the country’s funding ability after the 10-year Spanish bond yields jumped above 6% last week. Financing troubles in the fourth largest eurozone economy may lead to contagion problems in other economies in the region.

The US dollar (USD) strengthened against a basket of currencies. Against the Japanese yen (JPY), the greenback rose as high as 81.56 from 81 after Japanese data showed a trade deficit in contrast to February’s trade surplus. The yen is also weighed by expectations for further monetary easing by the Bank of Japan in an effort to boost the economy. The Australian dollar (AUD) dropped against the greenback weighed by expectations that Australia’s largest trade partner, China, will soon ease its monetary policy. The pair fell as low as 1.0340 from 1.0415.

The British pound (GBP) soared versus the US dollar to 1.6044 from 1.5894 after the release of the Bank of England meeting minutes. The minutes showed that Adam Posen, who was known for voting for an increase in the central bank’s bond purchasing program, had voted to leave the program unchanged. The recent jump in the UK Consumer Price Index was one of the reasons behind Posen’s change in stance. The UK jobs figures were also released yesterday which showed that unemployment rate unexpectedly fell to 8.3%.

Oil fell to 102.17 dollars a barrel from 104.49. Gold (XAU) dropped to 1636.60 dollars an ounce from 1654.20 and against the euro, gold fell to 1256.69 euro an ounce from 1257.05. Silver (XAG) fell to 31.35 dollars an ounce from 31.88. Stay in tune throughout the day with !

OutlookPivotPreference1Sentiment2
EURUSD1.3140SHORT @ 1.314051% of deals buy EUR
USDJPY81.15LONG @ 81.2058% of deals buy USD
GBPUSD1.5965LONG @ 1.596518% of deals buy GBP
AUDUSD1.0385SHORT @ 1.038557% of deals buy AUD
GOLD1634.00LONG @ 1634.0081% of deals buy GOLD
OIL104.50SHORT @ 104.5086% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
USD12:30Initial Jobless Claims370K
USD14:00Existing Home Sales4.62M
EUR14:00Consumer Confidence-19
EquitiesEUROPEUSASIA3
FTSE 100-0.38%?S&P 500-0.41%?NIKKEI-0.78%?
DAX-1.01%?DJIA-0.63%?HIS0.38%
CAC-1.59%?NASDAQ-0.37%?CSI 300-0.25%?
3 at the time of writing