EU Morning Report- Euro rebounds, focus on the UK inflation

The US dollar (USD) stumbles against a basket of currencies on an improved sentiment in the market. Versus the safe haven Japanese yen (JPY), the greenback rose to 79.47 from 79.12. Investors are now focusing on the Bank of Japan’s two-day policy meeting starting on Tuesday and the question is whether BoJ will decide for additional easing. Attention is now on the US Existing Home Sales and the Fed Manufacturing Index and investors will be closely watching for any signs of US economic growth.

The British pound (GBP) edged higher against the greenback rising to 1.5841 from 1.5779. The UK economy remains vulnerable to the eurozone deepening problems while it suffers from a slow growth and a stubbornly high inflation Sterling weakened following last week’s Bank of England inflation report which downgraded growth forecasts raising expectations about further quantitative easing. All eyes now turn to today’s inflation from the UK which is expected to increase to 0.6%.

Oil rose to 93.32 dollars a barrel from 90.89. Gold (XAU) edged lower to 1584.62 dollars an ounce from 1599.28 and against the euro it fell to 1242.81 from 1247.45 Silver (XAG) dropped to 28.05 dollars an ounce from 28.79. Stay in tune throughout the day with foreign exchange bullets!