Market Cheers G20 Action

Daily Forex Fundamentals | Written by Easy Forex | Apr 03 09 04:30 GMT |

U.S. Dollar Trading (USD) in a anticipated trading day the USD finished very weak against all currencies except the Yen with US stocks surging to 5 week highs on the back of G20 IMF funding boost plans. Also helping to improve sentiment was the change in accounting standards that will help banks account for toxic assets. Crude Oil closed up $4.25 ending the New York session at $52.64 per barrel. In US share markets, the Nasdaq was up 51 points or 3.29% whilst the Dow Jones up 216 points or 2.79%. Looking ahead, Non Farm Payrolls (March) forecast at -650K vs. -651K. The Unemployment Rate is forecast at 8.5% vs. 8.1% previously. Finally ISM Manufacturing (Mar) forecast at 42 vs. 41.6 previously. The Euro (EUR) was a major gainer after the ECB cut rates by only 0.25% vs. market expectations of 0.5%. Also helping buoy the Euro was the deferred decision on unconventional measures. 1.3500 capped though trading was volatile. Overall the EUR/USD traded with a low of 1.3242 and a high of 1.3516 before closing at 1.3420. Looking ahead, March PMI Services forecast at 41.7 vs. 41.3 previously. The Japanese Yen (JPY) fell just short of 100 Yen on the USD/JPY with heavy protection of the 100. AUD/JPY surged along with GBP/JPY tracking the stock market gaining over 3%. The improved investor sentiment induced Yen selling with the market growing increasingly bearish on the Yen. Overall the USDJPY traded with a low of 98.42 and a high of 99.89 before closing the day around 99.40 in the New York session. The Sterling (GBP) shot higher not waiting for the ECB with Nationwide house prices gaining (+0.9%) for the first time in since 2007. EUR/GBP slumped below 0.9100 whilst GBP/CHF shot to week highs on further Swiss National Bank franc selling. Overall the GBP/USD traded with a low of 1.4459 and a high of 1.4747 before closing the day at 1.4710 in the New York session. Looking ahead, March PMI Services forecast at 43.5 vs. 43.2. The Australian Dollar (AUD) was the biggest gainer with the market pushing the pair above 0.7000 in early Asia after economic data. Feb Trade Balance at 2000M vs. 700M forecast. In Europe and US the market pushed the pair relentless higher towards 0.7200. Focus now shifts to 0.7268 the year highs. Overall the AUD/USD traded with a low of 0.6977 and a high of 0.7198 before closing the US session at 0.7150. Gold (XAU) fell on IMF selling talk in the markets. Overall trading with a low of USD$895 and high of USD$929 before ending the New York session at USD$903 an ounce. Easy Forex http://www.easy-forex.com Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products