Source: ForexYard
Following the release of details regarding the ECB’s plan to lower borrowing costs in Spain and Italy yesterday, the euro was able to extend its gains against most of its main currency rivals during overnight trading. The euro-zone news led to risk taking in the marketplace and boosted other higher yielding assets, including gold. Gold was able to break above the $1700 an ounce level last night, and is currently at its highest level since March 12th of this year.
Main News for Today
US ADP Non-Farm Employment Change- 12:15 GMT
• The figure is considered an accurate predictor of tomorrow’s all-important Non-Farm Payrolls figure
• If today’s news comes in above the forecasted 142K, the dollar could see gains during afternoon trading
ECB Press Conference- 12:30 GMT
• The euro received a significant boost yesterday after details of the ECB’s plan to boost euro-zone growth were announced yesterday
• If additional details are given today, the euro could extend its recent gains
US ISM Non-Manufacturing PMI- 14:00 GMT
• If the PMI comes in below the forecasted 52.5, it may lead to an increase in speculations that the Fed will initiate a new round of quantitative easing in the near future, which could weigh down on the dollar
US Crude Oil Inventories- 15:00 GMT
• The inventories figure is forecasted to come in at -4.9B, which if true, may signal to investors that demand in the US has gone up, which could lead to gains for crude oil
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