Source: ForexYard
The euro took moderate losses against the US dollar last night, but remained bullish overall as investor anticipation regarding potential ECB action to lower Spanish and Italian borrowing costs kept risk sentiment high. Additionally, better than expected Australian employment data caused investors to shift their funds to higher yielding assets, including the aussie. The AUD/USD advanced close to 60 pips during Asian trading to reach a fresh 4 ½ month high at 1.0612. The pair is currently trading at 1.0590.
Main News for Today
ECB Monthly Bulletin- 08:00 GMT
• The bulletin outlines the ECB’s economic forecast for the euro-zone
• A positive outlook could lead to more risk taking in the marketplace, which may help the euro against the US dollar and yen
US Unemployment Claims- 12:30 GMT
• Analysts are forecasting today’s figure to come in slightly higher than last week’s
• If the news comes in higher than 371K, the dollar could see additional losses against the JPY in afternoon trading
US Trade Balance- 12:30 GMT
• The trade balance figure is forecasted to come in at -47.4B, slightly better than last month’s -48.7B
• Any better than expected data could help the dollar recoup some of its recent losses against the EUR and AUD
Read more forex news on our forex blog
Forex Market Analysis provided by ForexYard.
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