Source: ForexYard
The dollar largely maintained its gains from yesterday afternoon during the overnight session. The greenback was able to benefit from risk aversion in the marketplace after the Fed refrained from announcing new measures to stimulate the US economic recovery. The FOMC Statement also resulted in crude oil and gold turning bearish during the evening session, neither of which were able to stage an upward correction during Asian trading.
Main News for Today
Spanish 10-Year Bond Auction
• If the bond auction shows that Spanish borrowing costs have gone up further, the euro could extend last night’s bearish trend
ECB Press Conference- 12:30 GMT
• The press conference is expected to be the highlight of the trading day, and could generate significant market volatility
• Investors are anxiously waiting to see if the ECB will initiate a new round of bond-buying to lower borrowing costs in Spain and Italy
• If new measures are announced today, the euro could see substantial gains for the rest of the day
• If no new measures are announced, the euro could see bearish movement during afternoon/evening trading
Read more forex news on our forex blog
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
