EUR Strengthening, As US Labour Market Improves

EUR Strengthening, As US Labour Market Improves

The euro (EUR) is rising against most of its major counterparts, early in the European session. The single currency recorded a fresh daily at 1.3418 against the US dollar (USD). French disappointing manufacturing data and a record high unemployment in Spain pushed the euro (EUR) lower yesterday during the EU session. However, the release of better than expected German data and signs of an improving labour market in the US helped the single currency rebound. Market participants today will be closely monitoring the release of the German IFO Business Climate at 09:00 GMT.

The US dollar (USD) is trading sideways against the Japanese yen (JPY) after rising above the 90 figure, following the comments made by the Japanese Trade Minister Nishimura who said that an exchange rate of 'USDJPY' at 100 would not be a problem'.

GOLD (XAU) is relatively quiet, trading just above 1670 US dollars (USD) an ounce. Nevertheless the precious metal is susceptible to wild moves following calm spells such as this one.

The British pound (GBP) has weakened considerably in the past few days and it will be very interesting to trade its price action before and after the release of the 4th quarter Gross Domestic Product.