Forex-Metal Daily Analysis -04/03/2011

Greenback rehabilitates.

Asian and European trading sessions:
Euro: Euro traded at its maximums during the Asian session on Thursday in anticipation for the interest rate decision today. The EUR/USD pair traded in the range of $1,3840-$1,3875.
The released German and Euro-zone PMI indices were below expectations, but the Euro-zone retail sales data showed growth above forecasts.
According to the experts’ forecasts, the ECB left the interest rate unchanged at the previous level of 1.00%. But during the accompanying interest rate decision statement of the head of the ECB, Jean-Claude Trichet, he mentioned that “the rate increase at the next ECB meeting would be possible”. As a result, the demand for the euro grew and the EUR/USD rate increased and reached the maximums of $1.3974.
US Dollar: On Thursday the US dollar managed to rehabilitate against almost all its counterparts and win back the previously lost positions.
The released Initial jobless claims dropped for 368K against the forecasted increase for 395K. The ISM non-manufacturing composite index turned out to be at the level of 59.7 against the expected level of 59.3.
British Pound: The released today UK PMI Services index turned out to be below the forecast and below the last month’s level. As a result, the pound decreased considerably against the greenback. The GBP/USD dropped to $1.6250 range.
Oil: Oil prices showed some reduction, but still traded around the maximums of $101.05 rate per barrel.
Gold: Gold traded at the $1,423 mark per ounce.

American trading session:
Japanese Yen: The USD/JPY pair grew and reached the level of Y82.50.