As markets await more earning reports later this week, equities resumed their rally thus putting further pressure on the greenback. Euro printed new yearly highs this morning by trading above 1.4970 against the US dollar.
The Australian dollar also climbed to yearly highs against the US dollar yesterday after hawkish comments delivered by the RBA, hinting that a rate hike cannot be avoided. As officials at the RBA believe that the crises has passed, and given a strong business confidence, markets are thriving for higher interest rates.
Gold recovered to above 1065 dollar an ounce after US dollar slump continued. The scarce metal continues to appeal to investors as a hedge against inflation and as a secure security - at all times.
Oil managed to cross above the 80 dollars a barrel mark, also a new yearly high. A high price of crude may exert pressure on growth, and could lead into increasing production in a bid to normalize the rate of advance in prices.
Currency to watch out for: EURUSD & USDCAD
- The EURUSD pivot point is at 1.4900 with a preference to enter into long positions at 1..4910
- The USDCAD pivot point is at 1.0350 with a preference to enter into short positions 1.0255
Today's calendar and market movers:
- US Building Permits expected to rise by 600K
- Bank Of Canada Rate Decision, expectation to hold rates at 0.25%
DOW continued its rally over 10,000 closing almost 1% up yesterday. Asian stocks were up also this morning with Nikkei, 80 points positive.