Currencies
EUR/USD – After yesterday’s slight recovery against the dollar, the Euro seems to be continuing its momentum upward on Tuesday. After hitting the lowest level in two months, on the back of Yellen’s comments and various sources from the FED reiterating the point that a rate hike is likely the dollar was gaining momentum but after some positive news out of German and France this morning the Euro seems to have reversed back. How long this will last is another thing, as we have a busy few days of news from the US later this week.
USD/JPY – The USD/JPY continues to trade just above the 111 level after a quiet start to the week. Traders of this pair will be looking towards the Consumer confidence release later today from the US, with a forecast improvement of 96.0 up from the previous 94.2 .
Commodities
Gold – With Gold dropping below the $1200 level for the first time in over 3 months over, we saw some the precious metal regain some of its losses before close yesterday, but with the ever present cloud of a rate hike hanging over investors heads gold has been trading downwards again this morning. Gold Traders will want to keep a close eye on manufacturing reports from China later this week.
Oil – Since reaching the $50 level last week Crude has been fairly flat, trading around the $49.5 level, this is primarily due to the OPEC meeting in Vienna on Thursday, where traders will be wondering will there be any changes in production. Iraq have already come out and said they are increasing their exports in the month of June.
By Ian Fallon