The euro continued to fall against its central currency competitors yesterday, as traders remained careful about investing in riskier assets because of political ambiguity in the euro-zone. The EUR/USD fell to an additional three-month low throughout the afternoon session at 1.2929. Today traders should be ready for market instability, as important indicators from the UK and US are going to be released. Pay attention to the UK MPC Rate Statement, the US Trade Balance figure and a speech from Fed Chairman Bernanke. In case the news cause further pessimism in the global economic recovery, riskier currencies like the euro might go down even further.

Summary

USD - Safe Haven Dollar Spreads Gains amidst Euro-Zone Doubts

EUR - Risk Aversion Causes Further Euro Losses

Gold - Declining Demand Causes Fall in Gold Price

Crude Oil - Oil Continues to be Bearish Because of High US Inventories

Following multiple failures by Greek politicians to form a new government, investors are now concerned about what impact a possible new election will have on Greece's status in the euro-zone. The news weighed down on riskier currencies, particularly the euro, throughout Friday's trading session. The EUR/USD dropped to a fresh 3 ½ month low at 1.2903 before staging a slight correction to close out the week at 1.2917. Turning to this week, euro-zone news is once again forecasted to dictate the direction the market takes. Any additional negative announcements out of Greece could drive the euro even lower against its main currency rivals.

A batch of negative euro-zone economic indicators, including a worse than expected manufacturing PMI, drove the EUR/USD to its lowest level in over a week during trading yesterday. The news also resulted in the euro dropping over 140 pips against the yen during the European session. Turning to today, European news is forecasted to generate significant market volatility. Traders will want to pay attention to the results of a Spanish debt auction, as well as to the ECB Press Conference at 12:30 GMT. Should any of the news signal further troubles regarding the euro-zone economic recovery, the common currency could drop further before markets close for the week.

Summary

USD - ADP Employment Figure Leads to Dollar Losses

EUR - ECB News Set to Impact Euro Today

AUD - Risk Aversion Leads to Aussie Losses

Crude Oil - US Inventories Figure Causes Oil to Drop

drop | oil | us inventories | loss | aussie | risk aversion | euro | impact | news | ecb | dollar | losses | employment figure | adp | crude oil | aud | eur | USD

A batch of negative euro-zone economic indicators, including a worse than expected manufacturing PMI, drove the EUR/USD to its lowest level in over a week during trading yesterday. The news also resulted in the euro dropping over 140 pips against the yen during the European session. Turning to today, European news is forecasted to generate significant market volatility. Traders will want to pay attention to the results of a Spanish debt auction, as well as to the ECB Press Conference at 12:30 GMT. Should any of the news signal further troubles regarding the euro-zone economic recovery, the common currency could drop further before markets close for the week.

Summary

USD - ADP Employment Figure Leads to Dollar Losses

EUR - ECB News Set to Impact Euro Today

AUD - Risk Aversion Leads to Aussie Losses

Crude Oil - US Inventories Figure Causes Oil to Drop

The AUD took heavy losses vs. its main currency rivals during yesterday's trading session, falling a bigger than expected cut in Australian interest rates. The AUD/USD fell over 100 pips following the news, reaching as low as 1.0304 during early morning trading. The aussie also fell close to 100 pips against the JPY and 145 pips against the euro. Turning to today, traders will want to focus on the UK Construction PMI at 8:30 GMT, followed by the US ADP Non-Farm Employment Change at 12:15 GMT. Any positive news could help both the British pound and US dollar reverse their current bearish trends.

Summary

USD - US Manufacturing PMI Gives USD Boost

EUR - EUR Stays Range Bound During Slow Trading Day

Gold - Gold Reverses Gains Following Positive US News

Crude Oil - US Manufacturing Data Signals Increase in Oil Demand

aud | interest rate | cut | losses | trading session | Australian | us manufacturing | pmi | euro | slow | gold | reverses | crude oil

A worse than expected Advance GDP figure sent the dollar tumbling to multi-week lows against several of its main currency rivals on Friday. The EUR/USD closed out the week at 1.3249, up close to 100 pips for the day. Against the JPY, the greenback was down 115 pips to finish the day at 80.27. Turning to this week, the US Non-Farm Payrolls figure should be closely watched when it is released on Friday. In addition, Tuesday's US ISM Manufacturing PMI and Wednesday's ADP Non-Farm Employment Change may lead to significant activity in the marketplace. The dollar may extend its losses should any of the indicators come in below expectations.

Summary

USD - Dollar Volatility Expected Ahead of Non-Farm Report

EUR - Euro Remains Low Despite Smooth Italian Debt Auction

JPY - BOJ Monetary Easing Does Little to Damage Yen Strength

Crude Oil - Crude Oil Sees Gains amid Bearish US Dollar

Daily outlook | stock | economic data | dollar | euro | fed | personal income forecast | trading opportunities

The euro was able to maintain its recent bullish trend throughout the European session yesterday, as investors continued to support riskier assets as a result of strong euro-zone debt auctions earlier in the week. Turning to today, traders will want to pay attention to a batch of US news, including the weekly Unemployment Claims figure and Pending Home Sales. With both figures expected to signal growth in the US economy, the dollar may be able to recoup some of its recent losses.

Summary

USD - US Data May Help Dollar Today

EUR - Investor Risk Taking Helps Boost EUR

AUD - Aussie Sees Mild Gains amid Risk Taking

Crude Oil - Bearish USD Leads to Gains for Oil

volatility | forex market | us | home sales | bullish | trend | ero zone | debt auctions | us news | unemployment claims | pending home sales | us economy

The euro staged a slight recovery against the US dollar yesterday, following a successful Dutch debt auction which calmed investor fears regarding the recent political turmoil in Holland. After tumbling over 100 pips earlier in the week, the EUR/USD was once again above the 1.3200 level during the afternoon session. Turning to today, traders will want to pay attention to US news, including the FOMC Statement, FOMC Economic Projections and FOMC Press Conference. Any mention of future quantitative easing measures could cause the US dollar to take losses during the second half of the week.

Summary

USD - FOMC Economic Projections Could Lead to Market Volatility

EUR - EUR Gains Viewed as Temporary

Gold - Gold Benefits from Bearish Dollar

Crude Oil - Positive Euro-Zone News Leads to Gains for Oil

fomc | economic | market volatility | debt auction | euro | dutch | statement | press conference | projection

The euro gave up its recent gains against the US dollar and Japanese yen yesterday, following a combination of negative euro-zone news which led to an increase in risk aversion. Worse than expected indicators out of both Germany and France, along with political uncertainty following the first round of elections in France was largely to blame for the euro's bearish trend. Today, euro traders will want to pay attention to debt auctions out of Italy and the Netherlands. Positive results from the auctions could help the common currency. Furthermore, the US CB Consumer Confidence and New Home Sales figures are set to generate market volatility when they are released at 14:00 GMT.

Summary

USD - Risk Aversion Leads to Bullish Dollar

EUR - Political, Economic Uncertainties Weigh Down on Euro

JPY - Yen Sees Gains across the Board

Crude Oil - Crude Oil Falls Over $2 amid Risk Aversion

euro | reverse | gains | us dollar | Japanese | yen | negative | euro zone | news | increase | risk aversion | worse | expected indicators | germany | france | political uncertainty | elections | bearish trend | debt auctions | Italy | Netherlands

The euro turned bearish against virtually all of its main currency rivals yesterday, as risk aversion returned to the marketplace ahead of today's Spanish debt auction. Additionally, a positive UK Claimant Count Change figure led to a steep drop for the EUR/GBP. Today, in addition to the Spanish news, traders will want to monitor a batch of US news, including the Unemployment Claims and Existing Home Sales figures. Should any of the American news come in above expectations, the US dollar could see gains as a result.

Summary

USD - US Existing Home Sales May Lead to Dollar Gains

EUR - Spanish Debt Auction Forecasted to Generate Heavy Volatility

Gold - Gold Falls amid Euro-Zone Debt Fears

Crude Oil - Oil Turns Bearish Following US Inventories Figure

euro | bearish | main currency | risk aversion | Spanish debt auction | uk | claimant court change | figure | drop | Spanish news | us news | unemployment claims | existing home sales | American news | expectation | us dollar | gains

The euro staged a broad recovery during yesterday's trading session, as the combination of a positive German ZEW Economic Sentiment and smooth Spanish debt auction generated risk taking in the marketplace. Turning to today, traders will want to pay attention to the British Claimant Count Change, scheduled for 08:30 GMT. The report is the official unemployment statistic for the UK and has been known to generate market volatility. Should the figure come in higher than forecasted, risk aversion may return to the market place.

Summary

USD - Dollar Turns Bearish vs. Riskier Currencies

EUR - Risk Taking Leads to Euro Gains

AUD - Aussie Sees Upward Movement

Crude Oil - Crude Oil Hits 3-Day High

forecast | volatility | unemployment statistics | reports | british claimant count | market | risk | auction | Spanish debt | economic sentiment | zew | trading session | german data | euro

The euro extended its bearish trend against virtually all of its main currency rivals during yesterday's trading session, as investor fears regarding Spanish debt led to risk aversion in the marketplace. Turning to today, traders will want to pay attention to a batch of news out of both the US and euro-zone. Specifically, the German ZEW Economic Sentiment and US Building Permits figures, scheduled for 9:00 and 12:30 GMT respectively, are expected to generate volatility. Positive German news may help the euro recoup some of its recent losses.

Summary

USD - Dollar Continues to Fall against Safe-Haven Currencies

EUR - Spanish Debt Worries Send EUR to New Lows

JPY - Yen Sees Major Gains vs. EUR, USD

Crude Oil - Oil Continues to Fall amid Risk Aversion in the Markets

volatility | building permit figures | economic sentiment | german zew | euro zone | us | news | market | risk aversion | Spanish debt | trading | currencies | trend | bearish | euro

The euro was able to maintain its recent bullish trend vs. the US dollar yesterday, after smooth debt auctions from Italy and Spain helped boost confidence in the euro-zone economic recovery. The EUR/USD saw significant gains earlier in the week, following a speech from Fed Chairman Bernanke in which he commented that the US economy was not growing quickly enough. Today, the dollar will have an opportunity to recoup its recent losses when the US Core Durable Goods Orders figure is released at 12:30 GMT. Analysts are predicting that the figure will come in well above last month's. If true, the greenback could see gains as a result.

Summary

USD - Dollar Reverses Losses vs. JPY, AUD

EUR - Euro-Zone Debt Auctions Help EUR Maintain Gains

Gold - Gold Extends Bullish Run

Crude Oil - Crude Oil Slides during European Trading

us | durable | good orders | set | volatility | reverse | jpy | aud | euro | debt auction | gold | oil

The euro remained under pressure against the US dollar throughout yesterday's trading session, as investors remained cautious regarding Greece's financial situation. The EUR/USD spent much of the day range trading around the 1.3225 level after failing to break above key resistance lines the day before. Today, traders will want to pay attention to the weekly US Unemployment Claims figure. A better than expected result may result in the euro falling further against the greenback.

Summary

USD - US Unemployment Claims May Generate Volatility Today

GBP - Sterling Tumbles Following MPC Meeting Minutes

JPY - Yen Drops to 7-Month Low vs. USD

Crude Oil - Crude Comes Off Recent Highs amid Decreased Demand

euro | dollar | pressure | Greece | concerns | unemployment claims | volatility | gbp | mpc meeting | jpy | oil

Positive Chinese and German economic indicators led to some bullish movement for the euro during mid-day trading yesterday. That being said, the gains were for the most part short-lived, as the common currency once again began moving downward by the evening session. Today, traders will want to pay attention to a batch of British and US indicators that are likely to generate market volatility.

Summary

USD - USD Moves Downward Following Increase in Risk Taking

EUR - German Data Gives EUR a Boost

CAD - BOC Leaves Interest Rates Unchanged; CAD Takes Slight Losses

Crude Oil - Positive Global Data Sends Crude Upward

losses | interest rate | boc | boost | german data | risk trading | increase | crude | positive data | oil | cad | eur | USD

Despite the small gains made by the euro in trading yesterday, analysts are quick to warn that the common currency still has room to fall if negative news continues to be released from the euro-zone. While there is a light news day today, traders will still want to watch out for any developments from the meetings between France and Germany which could affect euro pairs.

Summary

USD - USD Takes Slight Losses but Remains Bullish Overall

EUR - European Debt Keeps EUR Bearish

AUD - Aussie Sees Slight Gains despite Risk Aversion

Crude Oil - Oil Steadily Declines Following Last Week's Highs

eur | vulnerable | small gains | Monday | trading | analysts | currency | negative | news | release | euro zone | france | germany | European debt

As we approach New Years we'll attempt to address the major issues for 2012.

Summary

CAD - Loose BoC Monetary Policy to Weigh on CAD

GBP - AAA Rating Won't Save Sterling

AUD - Interest Rate Differentials to Drive AUD

Gold - Gold is Not a Safe Haven Asset

2012 preview | examine | major issues | cad | gbp | aud | gold | interest rate | monetary policy

There has been a noticeable trend of stronger US economic data over Q4. Today's last batch of US numbers for this year may show the US economy go into 2012 on a high note.

Summary

USD - US Data to Close out the Year on a High Note

EUR - EUR/USD Yawns after Successful Italian Debt Auction

JPY - Deflationary Pressures Continue to Plague Japan

Crude Oil - Iranian Threats Fuel Crude Oil Price Increases

us | data | trend | economic data | q4 | numbers | Italian debt | auction | Iranian threats

Comments by Lorenzo Bini Smaghi is the first sign of the ECB's willingness to consider quantitative easing (QE) should the need arise.

Summary

EUR - ECB Sounds More Open to the Idea of QE

GBP - New Record Low for 10-year Gilt Yield

JPY - Government Lowers GDP Forecasts

Gold - Key Gold Support and Resistance Levels

ecb | QE | Lorenzo | Bini | Smaghi | consider | quantitative | easing | gilt yield | government | low | gold | support | resistance

Today's non-farm payrolls report is expected to show improvement in US employment data as many economists have upped their forecasts following the strong ADP report. However, traders may want to remain skeptical as US unemployment is still at uncomfortably high levels.

Summary

USD - Staying Skeptical of Todays Non-Farm Payrolls Report

EUR - Draghi Suggests Greater EU Integration

CHF - Negative Interest Rate Rumor Fuels CHF Weakness

Wheat - Wheat Prices Underperform

December | analysis | forex market | negative | interest rate | chf | eur | USD | adp | unemployment data | us | report | payrolls | non-farm