Markets look forward for the ECB to maintain a hawkish tone pushing EUR/USD to $1.5O5O. Though, if Jean-Claude Trichet disappoints and does not use the word ‘vigilant’, then they would recommend buying EUR/USD on dips ahead of the NFP numbers given their expectations as well as the recent data.
Analysts are anticipating whether the ECB will indicate a follow-up rate rise to last month’s move as it steps up its fight against inflation. Analysts expect the ECB to keep its strong vigilance wording. On the other side, top Fed officials said yesterday that the US inflation remains well under control, and a batch of weak data raised worries that Friday’s non-farm payrolls report will disappoint. This has reaffirmed the Fed’s promise to keep policy ultra loose. EUR/USD opened this session at $1.4829 and its currently reached a high of $1.4868.
USD/JPY fell to 80.43 yen, lows not seen since March 18. The pair has fallen 6% from a high of 85.51 set early last month following a rare coordinated G7 intervention in March to curb JPY gains.
AUD traded at $1.0735 ahead of retail sales data due at 0130 GMT. Economists expected sales to increase 0.5% in March from February. The data come at -0.5% and the AUD/USD fell as low as $1.0693, which could open up the way to a deeper decline towards the $1.0580 -$1.0610 area.
After the CME Group hiked margin requirement on COMEX silver, the prices fell 1% today to a 1 month low. Silver is experiencing its biggest 3 day drοp in 5 years on heavy profit taking. Silver’s 20% slide from a recοrd high of $49.77 hit last Thursday rippled into other markets such as crude oil and AUD, encouraging investors to take profits after a recent rally. Silver barely managed to move as high as $39.55, rising from a 1 month low of $38.81. Gold little changed today, reaching a high of $1521.2, rising from a previous session low of $1505.7