Currency Updates:
The US dollar (USD) is expected to come under heavy trading tonight, when Fed Chairman Ben Bernanke speaks. His policy of damping bond yields was helped by heavy Japanese purchases of US Debt Instruments. Japan is expected to keep up with the same policy in the near future.
This week starts with the euro (EUR) keeping its upward trend following European Central Bank (ECB) President, Mario Draghi’s, press conference on Thursday. The single currency traded just below 1.34 on Monday morning whilst expecting higher European Industrial Production to be released later this morning, it is a key indicator of the euro’s strength. A negative outcome will certainly remove any recent support.
Japan’s (JPY) Abe has continued its support by continuing its purchase of US Debt. This has helped the US dollar (USD) move higher into levels not seen since May 2010. The dollar looks bullish with no resistance in sight. It opened higher early in the Asian session at 89.39 and moved higher from there.
- Australian Dollar (AUD) continues its bullish trend moving above 94.00 against the Japanese Yen (JPY) as the Australian economy strengthens from higher exports.
- Gold (XAU) continues to slide versus the dollar (USD) trading just below its daily moving average at 1666, Gold has seen a drop in demand lately as investors look into more risky asset purchases and higher returns.
