The euro (EUR) retained its strength versus the US dollar (USD) remaining above the 1.335 level. The single currency kept its momentum from last week’s European Central Bank Conference and has not looked back since. Looking ahead, the dollar may see some volatility this afternoon after retail sales and the producer price index are released.
- The US500 (SPI) moved below its moving average in yesterday’s session looking to start on bearish footing this afternoon at 1460.
- Silver (XAG) keeps its upward momentum versus the dollar (USD) touching 31.21 in early trading. We expect demand for the precious metal to continue.
- The New Zealand Dollar (NZD) moved higher against the US dollar (USD) as its bullish rally continues, pushing 0.8394 and higher. It may try and surpass its recent resistance at 0.8460.
- The GBP moved lower against the US dollar (USD) in very volatile trading. Retreating to 1.6067 and looking to move lower, this afternoon’s speech by the Bank of England Governor Mervin King may revive the tumbling currency.
Today’s “Movers & Shakers”
The Japanese yen (JPY) traded higher versus the US dollar (USD) in the Asian session after almost a week of decline. On the other hand, the dollar found resistance against the yen at 89.65 and after giving it a second try retreated to lower territory currently around 88.60. At the same time the pair’s volatility is increasing.
- UK Consumer Price Index (y/y) 09:30 GMT forecast at 2.7%
- US Retail Sales (m/m) 13:30 GMT forecast at 0.2%
- US Business Inventories (m/m) 15:00 GMT forecast at 8