The euro experienced one of its most bullish trading days in recent weeks on Monday. The EUR was affected by the US stock market rally and bearish dollar. The US stock market rally led investors to buy back into the EUR, as they looked for returns on buying commodity-linked and higher-yielding currencies in Monday’s trading.
Another developing trend is the recovery of crude oil as bitterly cold weather in Europe and the United States boosted expectations of rising heating fuel demand. It is currently trading around $91.70 a barrel. As for today, oil is set to be in the spotlight again with important publications from Europe and the US; it has the potential to reach 95$ a barrel before the week’s end if the current mood persists.
Here are today’s leading events:
9:30 GMT: GBP – Manufacturing PMI
This monthly report on the British manufacturing sector is a strong leading indicator of economic health and industrial expansion for the UK. Should this report come out as expected, or higher, the British pound could see some added strength.
19:00 GMT: USD – FOMC Meeting Minutes
The Federal Open Market Committee’s (FOMC) meeting is very important as it is very likely to impact the US dollar’s volatility. While the impact of such statements is often not forecast, there is always the possibility that the FOMC will comment on a number of developments in the region and hint at future policy changes. Speculators will attempt to use those statements as a gauge of direction for the USD in the coming weeks and adjust their positions accordingly. Therefore, this speech will likely create volatility as it gets underway, but direction is unclear.
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Anton Eljwizat is a Currency Analyst with ForexYard. His experience in writing technical analyses for trading companies such as ForexYard has helped Anton stand out among other analysts. His understanding of technical indicators and chart analysis helps him provide some of the most groundbreaking analysis in the market today. His writings have been published on the ForexYard Trading Blog and affiliate websites. Anton holds a degree in Business Management from Ryerson University as well as a degree in Finance from Centennial College in Canada.
