Source: ForexYard
The euro remained within reach of a four-month high against the US dollar last night, as risk taking among investors remained high following a German court ruling yesterday in support of the euro-zone bailout fund. Meanwhile, the US dollar sunk to a more than three-month low against the Japanese yen amid speculations that the Fed will initiate a new round of quantitative easing to stimulate US economic growth as early as today.
Main News for Today
US PPI- 12:30 GMT
• The PPI is forecasted to come in at 1.1%, significantly higher than last month’s 0.3%
• If true, the dollar could see temporary gains before the FOMC Statement later in the day
US Unemployment Claims- 12:30 GMT
• Unemployment claims are forecasted to come in at 370K, slightly higher than last week
• If the indicator comes in above its forecasted level, the dollar could extend its recent losses
US FOMC Statement- 16:30 GMT
• Speculations that the Fed will announce a new round of quantitative easing today have weighed down on the dollar in recent weeks
• If a new round of monetary stimulus is announced, the dollar could extend its recent losses
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.
