Source: ForexYard
After advancing over 200 pips on Friday, the EUR/USD was able to hit a one-month high at 1.2242 during the beginning of Asian trading last night. That being said, the pair than proceeded to stage a bearish correction and is currently trading at the 1.2350 level. The euro’s bullish movement came as a result of the better than expected US Non-Farm Payrolls figure, which led to risk taking in the marketplace. Still, analysts continue to warn that high borrowing costs in Italy and Spain may limit any gains the euro makes.
Main News for Today
Fed Chairman Bernanke Speaks- 13:00 GMT
• Despite last week’s better than expected Non-Farm payrolls figure, the US unemployment rate increased from 8.2% to 8.3%
• The news has led some to speculate that the Fed will soon initiate a new round of quantitative easing to boost the US economic recovery
• Any mention from the Fed Chairman today of quantitative easing could result in significant losses for the USD
Forex Market Analysis provided by ForexYard.
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