Source: ForexYard
The euro saw moderate gains against the US dollar in overnight trading, as hopes that a deal will soon be reached to provide Greece with a new round of bailout funds led to risk taking. After gaining close to 40 pips to trade as high as 1.2802, the EUR/USD saw a slight downward correction and is now trading at 1.2790.
The USD/JPY fell close to 20 pips during Asian trading, after the BOJ announced that Japanese interest rates would remain at 0.10% for the time being. The pair, which is currently trading at 81.15, remains within reach of its recent seven-month high of 81.59.
After posting steady gains since last Friday, the price of crude oil fell close to $0.60 during the overnight session and is currently trading at $88.60 a barrel. That being said, analysts were quick to warn that any further escalation in the current round of Middle East violence could result in the commodity resuming its bullish trend.
Main News for Today
Eurogroup Meetings- All Day
• Euro-zone finance ministers will be meeting today to discuss the Greek economic situation
• Should an agreement be reached to provide Greece with a new round of bailout funds, investors may shift their funds to riskier assets, which could boost the euro
US Building Permits- 13:30 GMT
• The building permits indicator is forecasted to come in at 0.84M, slightly below last month’s 0.87M
• Any worse than expected data could lead to dollar losses against the yen
Fed Chairman Bernanke Speaks- 17:15 GMT
• The Fed Chairman is scheduled to discuss the current pace of the US economic recovery
• Any signs that the US economy is slowing down could lead to losses for the dollar, which may boost commodities like gold and silver as a result
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