The euro (EUR) edged lower yesterday as world equities turned negative and after a Spanish government bond auction failed to impress the markets. Fears about Italy’s debt problems returned to the markets after a report from Italy that the country would not be able to balance its budget by 2013 and cut its growth forecasts for 2012. Both Spain and Italy remain vulnerable to rising government bond yields. Against the greenback, the euro slid as low as 1.3068 from 1.3165 and today the pair rebounded to trade at 1.3163.

The US dollar (USD) was stronger against a basket of currencies during the Asian session but later weakened after softer than expected US economic data. Against the Japanese yen (JPY), the greenback rose as high as 81.73 from 81.26 as the yen continues to be weighed by expectations for additional easing by the Bank of Japan. Governor Masaaki Shirakawa said that more stimulus may continue until inflation reaches 1% reinforcing expectations for additional asset purchases at the 27 April meeting.  Against the dollar, the Australian dollar (AUD) fell for the second day weighed by a fall in world equities and disappointing US data which sapped risk appetite. The pair dropped to 1.0308 from 1.0390.

The British pound (GBP) jumped to a five-month high versus the US dollar rising to 1.6077 from 1.6008 on expectations that the Bank of England will not add more stimulus into the economy. Minutes from the last policy meeting showed that another member voted against an increase in the Bank of England’s asset purchasing program giving sterling a boost. The UK’s labor market also appears to be improving after unemployment rate surprised investors by falling to 8.3%. Focus turns to today’s Retail Sales figures.

Oil edged lower to 102.12 dollars a barrel from 103.36. Gold (XAU) dropped to 1630.56 dollars an ounce before rebounding to 1653.76 and against the euro it edged lower to 1250.49 euro an ounce from 1251.33. Silver (XAG) slid to 31.31 dollars an ounce and later rose to 31.02. Stay in tune throughout the day with !

EURUSD1.3065LONG @ 1.306540% of deals buy EUR
USDJPY81.40LONG @ 81.4056% of deals buy USD
GBPUSD1.6070LONG @ 1.606019% of deals buy GBP
AUDUSD1.0365LONG @ 1.036563% of deals buy AUD
GOLD1634.00LONG @ 1634.0075% of deals buy GOLD
OIL104.00LONG @ 104.0071% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
CalendarCurrencyTime (GMT)EventForecast
GBP08:30Retail Sales0.5%
CAD12:30Consumer Price Index0.5%

FTSE 100-1.85%S&P 500-0.59%NIKKEI-0.20%
CAC-2.05%NASDAQ-0.79%CSI 3001.01%
3 at the time of writing