Gold, Oil Rebound As EUR Still Strong

Gold, Oil Rebound As EUR Still Strong

The euro (EUR) is still strengthening against most of its major counterparts, as market sentiment remains positive. Yesterday, during the EU member states (ECOFIN) meeting, the region’s Finance Ministers appeared divided over how the European bank supervisory authority will work and this threatens to challenge the implementation of one of Europe's biggest reforms.

The Australian dollar (AUD) is whipsawing against the US dollar (USD) following the release of a lower than expected Gross Domestic Product (GDP) figure. This comes one day after the decision by the Reserve Bank of Australia (RBA) to lower their lending rate to 3% from 3.25%.

The New Zealand dollar (NZD) looks strong ahead of the Reserve Bank of New Zealand (RBNZ) Rate decision due tonight at 20:00 GMT. The RBNZ is expected to leave its lending rate unchanged at 2.5%.

The euro (EUR) recorded a fresh 6-week high this morning, at 1.3124 against the US dollar (USD). A major resistance level appears at 1.3140, and a break above that could pave the way for higher highs.

OIL is rising against the US dollar (USD), currently trading just below the 89.00. Investors will monitor OIL closely today ahead of the Crude Oil Inventories release at 15:30 GMT.