Source: ForexYard
Higher yielding assets, including the euro, gold and silver, took moderate losses during overnight trading before rebounding during the early morning session. Investor concerns regarding a lack of details in the recent Greek bailout agreement and the upcoming US “fiscal cliff, were largely responsible for risk aversion in the market yesterday.
The price of crude oil remained bullish throughout the Asian session. The US Crude Oil Inventories report, which indicated high demand among American consumers, resulted in the commodity advancing over $1 a barrel since afternoon trading yesterday.
Main News for Today
Italian 10-Year Bond Auction
• If the bond auction shows that Italian borrowing costs have gone up, the euro may take losses against its main currency rivals as a result
US Prelim GDP- 13:30 GMT
• The GDP figure is forecasted to come in at 2.8%, which would signal an improvement in the US economic recovery
• A higher than expected figure could result in risk taking, which would boost currencies like the euro and
AUD
US Unemployment Claims- 13:30 GMT
• The unemployment claims figure is forecasted to come in at 392K
• A lower than expected figure could help the USD vs. the JPY
US Pending Home Sales= 15:00 GMT
• Pending home sales are forecasted to have increased from 0.3% to 0.9%
• A better than expected figure today could help the US dollar against the Japanese yen
Read more forex news on our forex blog
Forex Market Analysis provided by ForexYard.
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