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
Read more forex news on our forex blog
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.