US News Once Again Set to Impact Markets Today
The US dollar took losses against most of its main currency rivals throughout European trading yesterday, amid speculations that the Fed would announce an expansion of its bond buying program to boost the US economic recovery. As a result, commodities, including gold and crude oil, saw upward movement over the course of the day. Today, US news is once again forecasted to generate market volatility. In addition to any developments in the ongoing “fiscal cliff” negotiations, traders will also want to pay attention to the Core Retail Sales, Retail Sales, PPI and Unemployment Claims figures, all set to be released at 13:30 GMT.
Economic News
USD – Dollar Takes Losses against Riskier Currency Rivals
Speculations that the Fed would announce a new round of quantitative easing yesterday caused the US dollar to fall against most of its higher-yielding currency rivals. The AUD/USD rose as high as 1.0555 during European trading, its highest level in almost three-months. Against the CAD, the greenback fell 0.9852, its lowest level since mid-October. Still, the news was not all bad for the dollar. The USD/JPY hit an eight-month high at 82.90 due to speculations that the Bank of Japan is likely to initiate a new round of monetary easing in the very near future.
Today, dollar traders will want to pay attention to a batch of US news set to be released during mid-day trading. With both the Core Retail Sales and PPI figures forecasted to come in below last month’s results, the USD could see additional bearish movement during afternoon trading. That being said, a better than expected Unemployment Claims or Retail Sales figure could help the greenback recoup some of its recent losses.
EUR – Risk Taking Helps Euro Extend Gains
The euro was able to advance against several of its main currency rivals throughout the day, as the combination of positive German data from earlier in the week and signs of progress in US “fiscal cliff” negotiations led to investor risk taking. The EUR/USD gained more than 50 pips during the European session, eventually reaching as high as 1.3052 before dropping back to the 1.3030 level. Against the Japanese yen, the common-currency advanced more than 60 pips to trade as high as 108.20.
Today, euro traders will want to pay attention to any announcements out of the EU Economic Summit, scheduled to take place throughout the day and tomorrow. While positive German news helped the euro in recent days, uncertainties regarding the economic and political situations in Italy and Spain still threaten to turn the currency bearish. If today’s summit signals any kind of slowdown in the EU economic recovery, the euro could see downward movement going into the end of the week.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
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