Source: ForexYard
The EUR saw mild bullish movement during the overnight session, as a better than expected Chinese GDP figure boosted appeal for riskier assets. While the currency is still overwhelmingly down against its main rivals, the Chinese data provided it with a brief respite. The EUR/USD shot up over 100 pips before hitting a significant resistance line at 1.2770. Currently the pair has retreated to the 1.2748 level. The EUR/JPY has come off its recent 11-year low and is currently trading at the 97.70 level.
While analysts are quick to warn that the euro’s bullish behavior is likely temporary, traders will still want to pay attention to a batch of European news set to be released today which may impact the currency. Specifically, the German ZEW Economic Sentiment is likely to generate volatilitly. Should the indicator come in above the predicted level of -49.7, the euro may be able to extend its gains going into mid-day trading.
Later in the day, traders will want to pay attention to the Bank of Canada’s Rate Statement and the Canadian Overnight Rate. The loonie has seen significant bullish movement as of late, particularly against the US dollar. Should today’s BOC Rate Statement illustrate positive Canadian economic growth, the CAD may be able to extend its gains.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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