Source: ForexYard
The US dollar extended its bearish trend against most of its higher-yielding currency rivals during overnight trading, following the Fed’s announcement of a new round of quantitative easing yesterday. The EUR/USD gained some 30 pips to trade as high as 1.3097, while the USD/CHF fell 15 pips.
Speculations that the Bank of Japan will initiate a new round of monetary easing following upcoming elections in Japan resulted in the USD/JPY gaining an additional 25 pips during Asian trading to trade as high as 83.65.
After dropping more than $20 an ounce during afternoon trading yesterday, gold was able to stage a modest recovery last night, and is currently trading just below the $1700 level. Crude oil spent the majority of the night range trading around its current level of $86.50 a barrel.
Main News for Today
US Retail/Core Retail Sales- 13:30 GMT
• While a significant improvement over last month is expected for the Retail Sales figure, the Core Retail Sales, (which excludes automobile sales), is forecasted to remain at 0.0%
• A worse than expected result for either indicator today could lead to additional dollar losses during afternoon trading
US PPI- 13:30 GMT
• Forecasted to come in at -0.5%, which if true, would represent a decrease over last month
• A worse than expected result today may lead to dollar losses
US Unemployment Claims- 13:30 GMT
• Forecasted to come in slightly below last week’s figure, which if true, would represent an improvement in the US labor sector
• If today’s news comes in below the expected 368K, the dollar may be able to recoup some of its recent losses
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