Tuesday, 8 Mar 2011

Euro Corrects Gains Vs. The Majors

The euro slipped versus the dollar on Tuesday, pausing from a rally spurred by expectations of a euro zone interest rate rise and raising the possibility of a downward correction on concerns about euro zone debt problems. . The EUR is currently trading lower against the USD by nearly 80 pips at 1.3909. It is also trading lower against AUD and GBP.

An early slide in oil prices also encouraged investors to pare back long positions in the Swiss franc -which has gained broadly from safe haven buying throughout the political uprising in Libya.

Tomorrow, in a day that forex traders cannot afford to overlook, a batch of data is expected from the leading economies. Both the German Industrial Production and Crude Oil Inventories will be released on the same day, promising an extremely volatile trading day. Traders should take advantage of this unique opportunity and use the volatile market in order to capitalize profits.