The single currency extended its gains over the American Dollar bringing the last 16 months high at 1.4713. The highlight of the EURUSD pair during the Asian Session at around 23:00GMT the Euro blasted in value when it gained a near 70 pips in under 5 minutes. Market players estimate that this sudden upward movement was a result of stop loss triggering that forced Dollar short position to close their positions hence lifting the Euro value. The pair is currently traded at 1.4684 exhibiting some corrective behavior before it probably continues to move up.
The Japanese Yen failed to continue its gains against a weaker Dollar as Standard and Poor’s threatened about reducing Japan’s sovereign rating. The agency issued a warning that the massive cost of the previous month’s devastating earthquake would hurt the country’s already weak public finances without tax hikes. Following the announcement the USDJPY pair developed a peak high of 81.76 while it is currently traded at 81.54.
The GBPUSD pair did not demonstrate any significant activity. Early in the session the Sterling developed some gains against the Dollar it remained at the 1.6507 level for a couple of hours and then dropped near the 1.6500 region. Market players are highly anticipating the UK CPI index figure which is due to be released at 11:30 GMT, showing inflation measurements and therefore significant volatility is to be expected.
The Australian Dollar continued to gain in value over the American Dollar. The 29year high value of the AUSUSD was extended at 1.0851 being boosted by the hawkish 1.6% CPI index for the 1st Quarter of the Year. The announcement of the CPI found the Aussie gaining a near 55 pips within a few minutes bringing the American Greenback in an even more uncomfortable position. With technical and economic indicators working in favor of the Aussie it of high interest to observe how high it will reach.
Gold, the precious metal, recovered some of its losses that have occurred from sharp falls from previous session. Investors have sought Gold as they are awaiting for the US Federal Reserve’s meeting scheduled today where it is expected that the interest rates will remain unchanged. Gold started the session today at USD1506.09 an ounce, reaching as high as USD1509.89 an ounce, while it is currently on an uptrend