Source: ForexYard
The euro remained near a two-year low against the USD in overnight trading, following a downgrade of Italy’s credit rating. The EUR/USD is currently trading at 1.2185. The Australian dollar saw upward movement last night after the Chinese GDP figure came in at its expected level of 7.6%. China is Australia’s biggest trading partner and the aussie typically benefits from positive Chinese news.
Main News for Today
Italian 10-Year Bond Auction
• Following Italy’s credit rating downgrade yesterday, investors will be closely watching the bond auction to see if Italy’s borrowing costs will go up further
• Should demand for Italian bonds come in low, the euro could extend its losses against the USD and JPY
US PPI- 12:30 GMT
• The Producer Price Index (PPI) is forecasted to come in at -0.5%, well above last month’s -1.0%
• If today’s news comes in as forecasted the dollar could see upward movement against the JPY before markets close for the week
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