The USD and EUR continued to offer a complex mix on Tuesday as the greenback gained against the Single Currency. Nervous sentiment has not abated regarding either currency as a great wave of debate has ensued about which currency has the weakest structural deficiencies. The USD finds itself near the stronger part of its range against the EUR going into today’s sessions, but plenty of questions will shadow the environment. Cautious trading was prevalent on Wall Street on Tuesday as the equities showed they were not able to ascertain any firm direction. There was very little data from the U.S. yesterday. Germany released its Factory Orders figures and they disappointed investors with an outcome of 1.6%, which was below the estimate of 1.9%
The Sterling traded lower against the USD on Tuesday under its EUR centric guise. The Manufacturing Production statistics were released and turned in a slightly better than expected return of 0.6% compared to the estimate of 0.4%, but this result was hardly anything to write home about.
Today will a rather lackluster day for data, but there are a couple of interesting tidbits to be had. The U.S. releases its Crude Oil Inventories numbers and this may prove worthwhile to watch for Oil traders. Crude is at a relative high, but its price has been called into question because its move may have been weather related. The world’s economies have not as of yet shown significant improvement and the price of Crude Oil today and tomorrow will be watched carefully. Gold also turned in a notable day on Tuesday as it reached nearly 1429.00 USD an ounce, but fell back below 1400.00 as the day ended. Germany will release Industrial Production numbers today and the U.K. will CBI Industrial Order Expectations.
The JPY lost ground to the USD and swung back to the weaker side of its range and the Japanese currency will be monitored today by investors who will be on the lookout for any additional breakouts. The AUD lost ground to the combination of a stronger USD and softening Gold price.
Today’s marketplace will once again be a test for traders who certainly can see that the USD and EUR have caused a stir in the currencies and broad markets. Yesterday’s strong range trading proved that sentiment remains nervous and that opportunities exist for those who have the ability to weather the shifting winds.
Written by bforex.com
