Euro edged higher on Thursday for the fourth straight day ahead of the
Spanish and Italian bond auction later today. A successful debt
auction in Portugal a day before lowered the yields and calmed the
markets helping the single currency touch a one week high at 1.3143
against the dollar. The single currency was last traded at 1.3128
versus the dollar. The European Central Bank and the Bank of England
will reveal their interest rate decision today.
Euro is supported by talks that the euro zone finance ministers will
raise the rescue funds available for the euro zone countries for the
possibility of seeking financial help. A significant increase in the
rescue funds eases investors' debt contagion fears but eyes turn on
today's European Central Bank's meeting and possible steps for helping
euro zone's periphery bond auctions. Euro is also supported by talks
that China and Japan will help euro zone through its debt crisis
helping the euro trade above the 1.31 level.
Dollar edged lower today suffering four day losses weighed by a
heightened risk appetite in the currency markets. Retail Sales are
expected on Friday that can give further signs of a sustained recovery
in the world's largest economy. Against the Japanese Yen, the dollar
slid on Thursday falling as low as 82.93 from 83.13 and speculation
expects it to retest yesterday's low at 82.80. The dollar rallied
against the Swiss franc as demand for the safe haven franc lowered
rising as high as 0.9747dollars from 0.9660
The Australian dollar fell versus the US dollar [1] after jobs data
showed employment in December improved less than expectations. The
Aussie fell to 0.9914 dollars after the data from 0.9964 dollars,
however the poor employment growth is mainly due to less people
looking for employment.
Gold edged slightly lower today as a higher risk appetite reduces
demand for the precious metal. The safe haven metal was last trading
at 1385 dollars an ounce from 1388.88 dollars an ounce.
*Currency to watch out for: EURUSD [2] & USDJPY [3]*
The EURUSD pivot point is at 1.3155 with a preference to enter into
Short positions at 1.3145
The USDJPY pivot point is at 83.90 with a preference to enter Long
positions at 83.95
*Today's calendar and market movers:*
UK's interest rate decision is forecasted at 0.5%
Europe's interest rate decision is forecasted at 1%
US Initial Jobless Claims is forecasted to drop at 402K
*Equity Markets:*
US equities closed positive on Wednesday with the S&P500 traded up
0.90% and the DJIA up 0.72%. The European bourses are also trading
positive with the FTSE trading up 0.61%, the DAX trading up 1.83% and
the CAC up 2.15%. The NIKKEI and the HSI at the time of writing are
trading up 0.73% and up 0.58% respectively.
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Source: ActionForex.Com
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