The euro edged lower today weighed by profit taking after it broke
above the 1.35 level on Wednesday. Central bank buying pushed the euro
higher at a nearly two-month high versus the dollar at 1.3537 from
1.3375. Successful bond auctions from Spain and Portugal eased
investors' fears about a euro zone debt contagion and talks of
restructuring Greece's debt further supported the single currency.
Today the euro retreated to 1.3427dollars and the pair was last traded
at 1.3441.
The US dollar appeared stronger on Thursday ahead of the US jobless
claims data released later today and expectations argue for a decline
in the data. Against the Swiss franc, the dollar fell to 0.93
yesterday and recovered losses today rising as high as 0.9783. The
sterling also fell against the US dollar sliding as low as 1.5907 from
1.6035.
The Australian dollar plummeted today against the US dollar weighed by
lower commodity prices and weaker equities. A statement in China
predicting that imported inflation in the first quarter will put
pressures on prices also weighed on the Aussie. Even though a report
showed that China's inflation eased in December, speculators argue
that this is due to rising food costs. Helped by the euro's rally, the
Aussie broke above parity level and rose as high as 1.0075 versus the
dollar yesterday. On Thursday, the Aussie surrendered its gains and
fell to 0.9933 dollars.
Gold edged lower today weighed by a stronger US dollar. Lower demand
for the precious metal pushed it lower falling as low as 1363.15
dollars an ounce from 1371.03.
*Currency to watch out for: EURUSD & USDJPY*
The EURUSD pivot point is at 1.3430 with a preference to enter into
Long positions at 1.3440
The USDJPY pivot point is at 81.85 with a preference to enter Long
positions at 81.95
*Today's calendar and market movers:*
US Initial Jobless Claims is forecasted to fall to 426K
Europe's Consumer Confidence is forecasted to drop to -12
US Fed Manufacturing Index is forecasted to fall to 20.3
*Equity Markets:*
US equities closed negative on Wednesday with the S&P500 traded down
1.01% and the DJIA down 0.11%. The European bourses are also negative
with the FTSE trading down 1.32%, the DAX trading down 0.85% and the
CAC down 0.90%. The NIKKEI and the HSI at the time of writing are
trading down 1.13% and down 1.26% respectively.
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Source: ActionForex.Com
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