Trading volumes remain very thin ahead of the New Year’s holiday. However, the Euro, Pound, and Yen all advanced against the U.S Dollar on Wednesday and have sustained their better values early this morning. Gold has continued to put in gains as speculators remain active.
EUR/USD: Euro Advances against U.S Dollar
The Euro advanced against the U.S Dollar on Wednesday, and the European currency is valued at 1.19. Data from Europe has been extremely light, but today’s Economic Bulletin from the ECB could prove interesting. The Euro is near important mid-term resistance and may continue to attract traders ahead of the New Year’s holiday.
Gold: Precious Metal Flourishing Among Speculators
Buyers remained active in Gold on Wednesday as the commodity approached the 1290.00 U.S Dollars an ounce level. Volumes remain thin in the broad markets, but bullish speculators have outnumbered sellers for the precious metal. Gold may continue to flourish and traders may believe a test of the 1300.00 U.S Dollars an ounce juncture is in the cards.
Crude Oil: Shift in Sentiment for Global Economy
Crude Oil remains within its higher boundaries as it traverses near the 60.00 U.S Dollars a barrel level. Crude Oil Inventories data will come from the States today. The improved buying impetus for traders may be occurring via a shift of sentiment regarding a better outlook for the global economy.
GBP/USD: Pound Drifts Higher in Light Trading
The Pound drifted higher against the U.S Dollar on Wednesday and is above the 1.34 level. Economic data from the U.K has been minimal and will stay that way until after the New Year’s holiday. However, High Street Lending which had been scheduled for yesterday will be released today, although its impact on the Pound will be minimal.
USD/JPY: Yen Edging Stronger in Asia
The Yen has continued to edge stronger against the U.S Dollar. The Japanese currency is approaching the 113.00 support level. Forex trading remains very light and the almost illiquid markets will continue until after the New Year’s holiday. However, the Yen may continue to exhibit signs of strength.
Yaron Mazor is a senior analyst at SuperTraderTV.
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