The euro halted its recent bullish streak yesterday, as investor concerns regarding euro zone debt outweighed the recent hawkishness regarding interest rates in the region. The EUR/USD dropped well over 100 pips yesterday and is currently trading below the 1.3900 level.
Today, traders will want to pay attention to the commodities markets as global news continues to affect prices, particularly with regards to crude oil.
Here is a roundup of the day’s main news:
15:30 GMT- US Crude Oil Inventories
The persistent violence throughout Libya has led to a sharp increase in the price of crude oil in recent weeks. While crude is still trading at well over $100 a barrel, there is evidence that today’s US inventories figure may start to bring prices down.
US oil reserves are forecasted to come in at 0.8M, a sharp increase over last week’s figure of -0.4M. There is a growing consensus that demand for oil has gone down in the US due to rising prices. If today’s figure comes in as predicted, that notion would be supported and could result in a downward correction for oil in afternoon trading.
