USD Trading Outlook (15-03-2013)

The euro (EUR), moving just above 1.3040 against the US dollar (USD), is seen regaining losses it incurred through last week’s eventful agenda. The pair is mostly consolidating as markets are expecting news regarding the Italian Government and the Cyprus bailout plan. Looking ahead, markets are expecting stronger growth from the United States which may lead to bullish dollar. Today keep an eye on retail sales and crude oil inventories, key indicators of a healthy economy.

• The GER30 (DAX) which tracks the top 30 German corporations is moving above 7970 while it continues to trend in that range. German equities are resilient even though negative industrial production in the Eurozone could have pushed the index downward.
• Gold (XAU) has moved a step up, above 1590 as the precious metal corrects losses incurred the previous week.
• Weekly option volatilities for the EURUSD remain constant around 7.95 as investors fear subsides after last week’s more event driven market.

Stay in tune throughout the day with foreign exchange bullets !