Source: ForexYard
Riskier currencies, including the euro and Australian dollar, received a moderate boost in overnight trading following a positive Chinese manufacturing indicator. That being said, fears that Spain will soon require a full scale international bailout limited gains, and the euro remains close to a two-year low against the US dollar. Crude oil was able to advance close to $1 a barrel as a result of the Chinese news, and is currently trading close to the $89 level.
Main News for Today
German Flash Manufacturing PMI- 07:30 GMT
• If the manufacturing figure comes in below the forecasted 45.3, fears that the euro-zone debt crisis is impacting growth in Germany may worsen
• Any disappointing news may weigh down on the euro
Fed Chairman Bernanke Speaks- 12:45 GMT
• Investors will be closely watching the speech for clues as to any future plans for the Fed to initiate a new round of quantitative easing
• If Bernanke does mention quantitative easing, the dollar is likely to reverse most of its recent gains during the afternoon session
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