Tuesday, 9 Nov 2010

EUR Drops against Majors

The EUR extended its losses on Tuesday on renewed concerns about high sovereign debt in the euro zone, providing further respite for the dollar and prompting some profit-taking in stocks. The 16 nation currency is currently trading lower against the CHF by nearly 30 pips at 1.3375. It is also trading lower against the AUD and JPY.

Gold added to a record breaking run, hitting a new high above $1,420 an ounce as investors sought safe havens in the face of a number of uncertainties, including the euro-area debt concerns and this week's G20 leaders' summit.

Today is a quiet news day for the U.S. as there are no major economic data releases on the calendar today. However, Canada, Britain and New Zealand appear to be releasing the bulk of today's news, which means we may see a day of trading with low liquidity and therefore increased volatility. Day-traders can take advantage of these intense trading days by swinging within the larger-than-normal price fluctuations.