Source: ForexYard
The euro was able to extend its recent gains against the US dollar in overnight trading. The EUR/USD gained close to 50 pips and is currently trading just below the 1.2300 level. Crude oil also saw moderate gains last night. The commodity reached as high as $89.08 a barrel level before correcting itself and dropping to its current level of $88.75.
Main News for Today
German ZEW Economic Sentiment- 09:00 GMT
• Analysts are predicting today’s news to come in at -17.3, which if true, would represent a drop over last month’s figure
• Should the news come in below expectations, it may raise fears that the euro-zone crisis is spreading and could cause the EUR to reverse yesterday’s gains
US Fed Chairman Bernanke Testifies- 14:00 GMT
• Investors are anxiously awaiting this speech to see if the Fed Chairman will hint at a new round of quantitative easing to boost the US economic recovery
• If there is any mention of quantitative easing in the testimony, the dollar could take significant losses in the afternoon session
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