The Euro sharply appreciated yesterday against the USD following the recent news from Greece and the testimony of Bernanke regarding the perils the U.S economy is facing in the near future. Will the Euro/USD continue to trade up today?
Here is a short outlook for the Euro /USD currency including the main news items and events that may affect forex trading for February 8th:
Forex Market February Update:
The Euro to US Dollar changed direction and sharply rose yesterday by 0.99% to reach 1.3260; during February, the EUROS/USD rose by 1.35%. The Australian Dollar and GBP also appreciated against the USD, while the Yen slightly depreciated against the USD.
The chart below presents the development of the Euro to US Dollar during January and February.
Correlations among Exchange Rates –up to February 8th
The chart below shows the correlations among several leading exchange rates to the Euro/USD (daily percent changes) during past months.
The chart shows that the strongest relation during February (up to date, but not significant due to small sample size) is Euro/USD with Australian dollar to USD.
Current Forex Indexes February 8th
Euro to US Dollar is traded at 1.3275 a 0.1075% increase as of 09:28*.
GBP to USD rate is at 1.5915 a 0.1167% increase as of 09:28*.
Forex and Commodities News for the Day
EIA Weekly Oil Market: the EIA report will offer some insight on the development of oil market in the U.S. and thus may affect oil prices (see here the recent oil stockpiles review);
China’s CPI: in November, the CPI fell to an annual rate of 4.2%; this rate is coming very close to China’s inflation target of 4% in annual terms. If the upcoming CPI will fall again it could affect the Asian markets and thus may also affect the USD.
Euro to USD Daily Outlook
There aren’t many news items or decisions to be made today that could affect the direction of Euro/USD. The developments in the Greek negotiations regarding Greece’s bailout plan might stir up a bit the European financial community. Tomorrow’s ECB rate decision will probably influence the direction of the Euro/USD.
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