Source: ForexYard
The euro saw slight gains against the dollar in overnight trading, as investors continue to eagerly await a speech from Fed Chairman Bernanke tomorrow. The EUR/USD advanced just over 30 pips to reach as high as 1.2559. Currently the pair is trading at 1.2540. Meanwhile, the AUD/USD hit a one month low at 1.0316 last night. The aussie has seen significant losses in recent days due to an economic slowdown in China.
Main News for Today
Italian 10-Year Bond Auction
• Investors are watching the bond auction closely to see if Italian borrowing costs have gone down
• Solid demand for Italian bonds could result in risk taking in the marketplace, which could boost the euro during mid-day trading
US Unemployment Claims- 12:30 GMT
• The unemployment claims figure is expected to come in slightly lower than last week’s
• If today’s news comes in below the expected level, it may be a sign that the US economic recovery is accelerating and could result in dollar gains before Bernanke’s speech tomorrow
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