EUR sinks and USD surges ahead of key economic data

Friday, March 06, 2015

The Euro retreated sharply yesterday and breached below the key level of 1.10 for the first time since September 2003 to reach a low at 1.0988. This morning, the European currency continues to remain under pressure breaking again below 1.10 to test a 12-year low ahead of key economic releases.

EUR sinks to 12-year low against the USD

EURUSD Curncy (EUR-USD X-RATE)   2015-03-06 09-01-37

Sterling surges above 1.38 against the euro 

GBPEUR Curncy (GBP-EUR X-RATE)   2015-03-06 09-02-45

In addition, the US dollar continues its strong rally holding strongly above 96.3 against a basket of currencies. The US Federal Reserve Bank reported yesterday that all 31 tested banks passed stress tests and exceeded minimum requirements.

Japan’s leading index was reported at 105.1 in January’s preliminary figures compared to 105.6 in December, missing analysts’ expectations of 105.8. However, the Nikkei index rallied over 200 points (+1.17%) above 18,970. On the other hand, the Hang Seng index extended declines towards 24,160, ending 0.12% lower.

Germany’s industrial production rose 0.6% m/m in January, beating analysts’ expectations of 0.5%. European equity markets were fairly mixed this morning ahead of key economic data from the US and Europe. The main focus will switch to the Eurozone’s GDP data in Q4 2014 as well as BoE/GfK Inflation report in the UK for the next 12 months. In the afternoon’s session, investors will be keeping an eye on the release of the US non-farm payroll data which could provide insight regarding the current US employment conditions.

Precious metals remain under pressure in early trade this morning. Gold slid lower and breached $1,200 to retreat towards $1,190 while silver declined towards $16. Crude oil prices rebounded as Brent front month futures recovered and climbed higher towards $61 per barrel while WTI futures edged higher to retest $51/barrel.     

XAU - Gold spot

XAU Curncy (Gold Spot   $_Oz )  D 2015-03-06 09-04-12 

   

Events for today:

 

0500

JP

Q2

Leading Index

0700

DE

Jan

Industrial Production

0930

UK

Mar

BoE/GfK Inflation Report

1000

EZ

Q4

GDP

1330

US

Jan

Trade Balance

1330

US

Feb

NF Payrolls & Unemployment

2000

US

Jan

Consumer Credit

 

All times UK Local Time

 

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