Monday, 7 Mar 2011

EUR/USD Spikes In Morning Session

The euro recorded substantial gains against the dollar this morning, as news of a possible euro zone interest rate hike next month continues to draw investors to the currency. The EUR/USD, currently trading at 1.4024, has gone up 51 pips in the last 4 hours alone.

Meanwhile, the continued violence in Libya is still driving up the price of crude oil. Crude, currently priced at $106.76 a barrel, is up well over $2 since markets opened for the week.

Turning to the rest of the day, traders will want to pay attention to the Canadian Building Permits figure, scheduled to be released at 13:30 GMT. The figure is forecasted to come in significantly below last month's, which if true, could halt the loonie's recent bullish trend against the USD.