Source: ForexYard
The euro hit a fresh four-month high against the US dollar yesterday, amid speculations that a German court will rule in favor of the ECB bailout fund today. Other higher yielding assets, including crude oil and gold, extended their upward trend last night amid an increase in risk taking among investors. Meanwhile, the dollar continued to fall against its other main rivals, including the yen and Swiss franc, in Asian trading, as investors eagerly await a FOMC Statement tomorrow regarding a possible new round of quantitative easing in the US.
Main News for Today
German Constitutional Court Ruling- 08:00 GMT
• Expectations that the German court will rule in favor of the ECB bailout fund have supported riskier currencies and commodities in recent days
• If the ruling does support the ECB’s plans to combat the euro-zone debt crisis, the euro could see additional gains throughout the day
US Crude Oil Inventories- 14:30 GMT
• Analysts are forecasting the figure to come in at -1.8B
• If true, it may be taken as a sign of high demand in the US and could result in oil extending its recent bullish trend
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