Currency Updates:
U.S. Dollar Trading (USD) the investor mood brightened again over night after the IMF upgraded global growth forecasts and a Spanish Debt Auction went well. US stock markets soared and were up over 200 points on the Dow at one stage leading the USD to be sold as safe haven demand dropped. Looking ahead, Crude Oil Inventories forecast at 1.6mn vs. 2.8mn previously.
The Euro (EUR) the market attempted to rally for a second day against the downtrend with the Spanish Bond Auction successful and the German ZEW Business Confidence Survey surprising the market with an increase to 23.4 vs. 22.3 previously. The EUR/USD hit profit taking above 1.3150 but is giving the sellers pause for thought with its bullish price action in the last two days.
The Japanese Yen (JPY) enjoyed a push higher in the USD/JPY and most crosses as the stock markets around soared. The outlook is mixed with the recent selling providing good value for long speculators and traders wary of getting caught short if the mood continues to brighten.
The Sterling (GBP) the GBP/USD roared back to life with the buyers given the green light to push the major back above 1.5950. The 1.6000 is now the target and although we traded above the level only a few weeks ago we failed to hold it after the market mood soured. EUR/GBP is still sitting at the lower 0.8200 region and testing the patience of those looking for a break lower. Looking ahead, April BOE Meeting Minutes forecast at 9-0. Also UK February Unemployment Rate forecast at 8.4.
Australian Dollar (AUD) the AUD/USD tricked Asian investors again with the selling pushing the AUD/USD to fresh week lows before reversing to fresh week highs as the sellers turned buyers given the stock market rally. The RBA minutes have increased the chance of a rate cut in May but the real decider is the Q1 Inflation data out next Tuesday.
Oil & Gold (XAU) Gold was volatile dipping sharply before reversing back to open levels at $1650 an ounce. Oil continued to rally tracking the stock market and weak USD up to $105 before easing slightly into the close.
