The euro (EUR) is strengthening against most of its major counterparts, as risk appetite is back on the table and the financial calendar is lackluster. The Reserve Bank of Australia (RBA) tomorrow, and the Royal Bank of England (BoE) on Wednesday, are due to release their latest policy meeting minutes. The minutes will offer an insight into RBA’s surprising decision to hold onto its lending rate against the consensus of another cut and the BoE’s Monetary Policy Committee (MPC) votes.
§ The euro (EUR) recorded a 10-week low versus the US dollar (USD) at 1.2690 on Friday but has since managed to recover and now trades just below 1.2800.
§ OIL advanced by 2 US dollars a barrel over the past week, on the back of rising tensions in Gaza. The key level to watch is 88.00 and the precious commodity looks upbeat, early in the EU session.
§ Gold (XAU) dropped to 1700 lows against the US dollar (USD) on Thursday and Friday last week; however it has produced a sturdy rise and now trades above 1720.
§ GER 30 (DAX) plunged to 6948, a multi-week low, from 7032.5 on Friday, having started the week 7167.3. The German index today opened back above the 7000 area.
Stay in tune throughout the day with foreign exchange bullets!
|.||EURUSD||1.2705||LONG @ 1.2715||55% of deals buy EUR|
|.||USDJPY||80.30||LONG @ 80.30||38% of deals buy USD|
|.||GBPUSD||1.5880||SHORT @ 1.5880||62% of deals buy GBP|
|.||AUDUSD||1.0395||SHORT @ 1.0381||58% of deals buy AUD|
|.||GOLD||1717||LONG @ 1720||67% of deals buy GOLD|
|.||OIL||84.90||LONG @ 84.90||69% of deals buy OIL|
|.||USD||15:00||Existing Home Sales||4.76mil|
|.||NZD||23:45||PPI Output m/m in 3rd quarter||0.3%|
OIL rebounded off 85.40 US dollars a barrel, broke through a resistance level found around 87.25, and recorded a 2-week high at 87.99 where the precious commodity met considerable selling pressure. Market participants should pay close attention around the 88 area, as a break-and-hold above this level could pave the way for higher highs.