By ForexYard
After slipping against the dollar in overnight trading, the euro has managed to recoup its losses throughout the morning and has gone on to make fairly substantial gains. The EUR/USD began the day right around the 1.3180 level after the pair fell around 50 pips last night. Analysts attributed that drop to prolonged euro-zone debt concerns. Since then however, the 16-nation single currency has spiked close to 100 against the greenback. It appears that investors have lost some confidence in the dollar, after rumors that the Fed will try and tame recent Treasury bond yields at the FOMC meeting set to take place tomorrow. With the EUR/USD currently trading around the 1.3270 level, further upward movement may take place during the evening session.
In other news, the price of crude oil has spiked throughout the morning session, as the combination of a recent OPEC meeting and heavy winter weather in the US have led to an increase in consumer demand. Since markets opened for the week, crude has jumped close to 150 pips, and is currently trading just above the 88.90 level. Traders will want to pay careful attention to oil. Should the bad weather continue to adversely affect the US, the commodity will likely continue to increase in value. Now may be a good time for traders to go into a buy position at a great entry price.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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