The EUR continued to decline vs. its main currency counterparts on expectations that Mario Draghi will signal that more stimulus is needed to tackle the eurozone's debt crisis. The EUR/USD pair fell significantly in Wednesday's trading session. The EUR/USD is currently lower this morning by 0.11 percent at $1.3144. The euro is also trading lower vs. the JPY this Thursday morning. The ECB is set to keep rates unchanged at the historical low of 1 percent today. There will be the Spanish auction of three-year and five-year notes in the coming hours. The euro is also lower due to weak economic figures from the region yesterday.
USD
The U.S. dollar is trading higher against most if its main peers ahead of a decision by the European Central Bank to keep rates unchanged at 1%. This is due to the weakness of the European economy as of now. The gains for the greenback come on the back of pessimistic data from the eurozone yesterday. The inconsistent data from the leading economies continues to drive traders back to the safe-haven dollar. The GBP/USD pair is down this morning, while the dollar is also up vs. the JPY, AUD and EUR.
GBP
The British pound climbed against the euro in response to a report showing U.K. construction output was better-than-forecast. The GBP also gained in response to yesterday's poor employment and manufacturing data from the eurozone. The GBP/USD pair is trading a touch lower right now. This is after hitting an 8-month higher on Wednesday. The GBP/USD could actually rise in the next few hours, despite the slight dip in the pair this Thursday morning.
Crude Oil
The price of crude oil slid to its lowest level in 2 weeks yesterday, as was predicted in the Daily Analysis of 02052012 that stated "Look to open Put options in crude oil during the current trading day." With rising U.S. stockpiles, U.S. employers adding fewer jobs than anticipated last month and with higher unemployment in Germany, it is no wonder that oil is trading so bearishly. As inventories continue to rise, traders become unsure about the global recovery. The contract plummeted yesterday and crude is also trading lower this morning at $105.12. Positive economic releases today are required in order to drive oil prices higher. Expect another day of bearishness for crude, as pessimism grips the markets.
GOLD
Gold slid yesterday due to negative economic data from the U.S. and Germany. This pushed traders to alternative assets, which in turn made the yellow metal a loser. The declines were predicted in the Daily Analysis of 02052012 that said "Going short on the gold binary option could bring a lot of profit today." Gold's losses continue this morning on a rising dollar and due to global economic uncertainty. The precious metal is currently trading lower by $5.65 at $1,648.35.
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