Feb. 4: MARKET OVERVIEW
US dollar declined during the US session on Tuesday and the Asian session on Wednesday. USD index lost 0.9% suffering the biggest one-day fall since October, 2013. The greenback was driven down as the commodity currencies surged amid the recovery in oil prices.
Brent crude oil traded in the $57.76 zone after an almost 6% advance on Tuesday. US crude traded around $52.39 up from $43.58 seen last week.
AUD/USD rose to 0.7850 as investors covered short positions after the drop caused by the RBA’s decision to cut interest rates. USD/CAD corrected down to 1.2400. NZD/USD rose to 0.7440. The RBNZ Governor Wheeler said that the central bank expects to keep rates on hold for some time, though “rate cut could be appropriate if demand weakens”. Wheeler also underlined that NZD was still unjustifiably high. USD/JPY once again tested resistance at 117.90 as Nikkei jumped by 1.8%.
EUR/USD rose to 1.1533 and is now trading in the 1.1480 area. Euro rose on hopes that Greece may secure a new debt deal with the creditors, although risks that the European partners won’t accept the proposal are high. EUR/CHF is above 1.0600.
Here are the main economic releases for today: