The U.S. dollar gained against the EUR in early trading yesterday as investors sought safety in the low-yielding, stable currencies after fraud charges were lodged against Goldman Sachs Group and concerns arose about a delayed meeting to deal with Greece's debt. As a result, the EUR/USD fell over 50 pips before correcting itself. Currently the pair is trading around the 1.3490 level. Similarly, USD/JPY rose almost 80 pips, pushing the oft-traded currency pair to 92.00 level.
Financial markets were rattled after the U.S. Securities and Exchange Commission charged Goldman Sachs with fraud on Friday in connection with a debt product tied to sub-prime mortgages. Global stocks fell while benchmark government bonds and less-risky currencies, rose. Looking ahead, the U.S is set for relatively quiet day, considering that only Fed Chairman Bernanke's testimony is the only significant indicator. However, Europe and Canada appear to be releasing the bulk of today's news, which means we may see a day of trading with low liquidity and therefore increased volatility. Day-traders can take advantage of these intense trading days by swinging within the larger-than-normal price fluctuations.