Yesterday and this morning, the market is calm with most pairs relatively unchanged from yesterday. Overall, we have seen some USD weakness following the rate hike confirmation form Fed’s Janet Yellen in March. Obviously, as there is not much more to speculate, investors have decided to books some of the profits they made buying the USD for months.
Today is another quiet day in terms of data releases, in a week that will see the ECB release its rate decision on Thursday and US NFP on Friday. Both events carry significant risk for the EUR and USD.
Interestingly, Iraq commented that it is ready to cut oil production further if the OPEC decides to extend its current policy, pushing Oil higher towards $53 per barrel.
EUR/USD took a tumble yesterday, falling from 1.0636 to 1.0577 after French Prime Minister Alain Juppe ruled out standing in France’s presidential elections as a possible replacement for the Republican candidate Francois Fillon, who investors saw as increasing the likelihood of a Le Pen win.
Gold trades weak, close to last week’s low of $1222 on increasing hopes of Fed rate hike in March.
The AUD/USD inched higher after the central bank kept interest rates unchanged and showed no hint of considering another easing, underlining the outlook for steady policy. The AUD/USD was up 0.4% at 0.7613 after touching 0.7633 right after the rate decision.
