Source: ForexYard
The euro saw moderate losses against the US dollar in overnight trading. The EUR/USD fell close to 40 pips, reaching as low as 1.2266 before bouncing back to its current level of 1.2282. Crude oil maintained its recent upward trend last night, as tensions with Iran continued to generate supply side fears among investors. The commodity is currently trading at $89.24 a barrel.
Main News for Today
Part Two of US Fed Chairman Bernanke’s Testimony- 14:00 GMT
• The markets saw significant volatility yesterday after the first part of the Fed Chairman’s testimony
• Investors will be closely watching today for any clues regarding a possible new round of quantitative easing to boost the US economic recovery
• Any mention of quantitative easing could lead to broad dollar losses during the afternoon session
US Crude Oil Inventories- 14:30 GMT
• Crude oil saw gains last week after the US inventories figure came in well below the forecasted level
• Should today’s indicator come in below the expected 0.5M, investors may see it as a sign that demand for oil in the US is going up, which could lead to additional gains for crude during afternoon trading
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