Wednesday, 10 Mar 2010

Euro Seems to Perform a Comeback against Major Currencies during Today's Trade

Today's best performing currency was the EUR. Since the day started the EUR remained higher against the YEN and the greenback. The EUR's comeback is linked to the strong economic data published by China, signaling global economic growth. This has helped investors put aside worries about sovereign debts, related to some European countries.

Furthermore, Former European Commission President, Romano Prodi, added to EUR, by providing a positive outlook for some closely monitored European countries. Another positive signal came from a successful bond sale by Portugal. EUR/USD traded higher most of the day, currently trading at 1.3644, EUR/JPY is currently trading at 123.50, as investors return to EUR by selling safer currencies. Traders should be wary about the EUR. Without serious fiscal improvement in countries such as Portugal, Greece, Spain and Ireland, gains in the EUR should be considered as a short term opportunity. The markets should expect further decline in the EUR, even if it remains high for several days.

In the commodities section, Gold traded down for most of the day, as investors chose to take profits. No significant reason exist today for the set back in gold prices other than an opportunity to close some profits from the recent rally, it is currently trading at 1104.65, gold prices are expected to continue rising. Crude Oil was much higher, today, at almost $83, supported by lower than expected inventories and good economic outlook by China, showing a rise in Chinese exports. Should Crude Oil price go beyond $83 a barrel, it would signal a buy opportunity.