Forex-Metal Daily Analysis -01/04/2011

Euro-zone interest rates expectations ruling the market.

Asian and European trading sessions:
Australian Dollar: On Thursday the Australian dollar strengthened due to the released Retail sales volume increase for 0.5% against the forecasted growth for 0.4%.
Euro: Expectations for the publication of the strong German fundamentals supported the euro during the Asian trading session. As a result the EUR/USD pair reached the $1.4180 level.
Reinforced expectations for the increase of the interest rate (as a result of the increased Euro-zone inflation today) at the next ECB meeting rendered additional support to the euro.
According to the released data, German unemployment decreased for 55K against the expected decrease for 25K. But German retail sales dropped suddenly for 0.3%. The EUR/USD continued to grow and reached the $1.4235 level.
Stress-tests that were performed in Ireland showed that 4 Irish banks would need additional financial support. Nevertheless, this fact did not have a negative impact on the euro.
US Dollar: Greenback was under pressure on Thursday, and decreased against all major currencies.
British Pound: The GBP/USD reached maximums at the $1.6150 mark. Unexpected increase of the Nationwide house prices against the forecasted drop resulted in the growth of the pound.
Japanese Yen: The Japanese yen strengthened on Thursday and the USD/JPY pair traded in the range of Y82.60 – Y82.90.
Oil: Oil rate demonstrated growth today, and the price reached the $106.55 level per barrel.
Gold: Gold reached maximums at the $1434.50 mark per ounce.

American trading session:
US Dollar: During the American trading session the US dollar managed to strengthen after the comments of the representative of the FRS, Narayan Kocherlakota, when he supported the forecast that the interest rates would be increased.