EU Morning Report - 18 February - G20 against currency wars

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By NikolasX | February 18, 2013 7:56 PM EST

Easy Forex


G20 ends with clear statement against currency wars


The euro (EUR) moved lower versus the US dollar (USD) currently at 1.3345 as European markets open. Currency wars have been avoided according to the G20 meeting that took place during the weekend in Moscow, however it seems that world leaders are willing to give Japan the flexibility to devalue its currency. Looking ahead we expect the European trade balance to be in surplus which may give a small boost to the single currency; however it looks more probable that a negative economic sentiment release from Germany later in the day may overshadow any positive news for the euro.

The Australian dollar (AUD) moved higher against the Japanese yen (JPY) as the Aussie touched 96.80 for the third time in the past week. This has prompted heavy sales of Australian bonds from Japanese investors that speculate that the yen has reached a top.

Gold (XAU) suffered heavy losses and is currently trading around 1614 after investors turn their attention to riskier asset classes.

Brent Crude (BRT), regained losses it incurred on Friday as confidence picked up after the G20 meeting. The crude is now trading at 117.79.

. Pivot Preference1 Sentiment2
. EURUSD 1.3380 SHORT @ 1.3380 43% of deals buy EUR
. USDJPY 93.25 LONG @ 93.25 36% of deals buy USD
. GBPUSD 1.5545 SHORT @ 1.5545 66% of deals buy GBP
. AUDUSD 1.0330 SHORT @ 1.0330 62% of deals buy AUD
. GOLD 1629.00 SHORT @ 1629.00 80% of deals buy GOLD
. OIL 97.05 SHORT @ 97.05 72% of deals buy OIL

data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
Currency Time (GMT) Event Forecast
. EUR 09:00 Current Account Balance 15.30B
. EUR 10:00 German ZEW Economic Sentiment 35.0
. CAD 13:30 Wholesale Trade -0.4%
Movers Shakers
The US dollar (USD) looks set to move higher versus a weakening Japanese yen (JPY). The pair, currently at 93.92, gained momentum after the G20 made a clear announcement that they will refrain from currency wars and competitive devaluations. At the same time some analysts suggest that a yen between 90 and 100 is within equilibrium.

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