FXPrimus has summarized the important market indicators of the day.

Today’s Important Indicators

DOLLAR lost steam on China reduction of US Bond Purchases while EURO remained solid above 1.194 despite it pierced the 1.20 level.

POUND weakened on poor data.

Today, investors look forward to the ECB Monetary Policy Accounts and the US PPI.

Today’s Forecast for Important Trading Indicators

Market Movers

• USDJPY – DOLLAR plumets 120 pips versus YEN as risk appetite surges following BoJ and PBOC. The Greenback plunged to a daily low of 111.25 following reports from China that PBOC is likely to reduce its US Debt Purchases. Earlier in the week BoJ reduced its Japanese Government Bonds (JGB), progressing into a bearish stimulus that extended further yesterday. The pair broke below the triangle formation and is currently forming a correction that could be signalling a further downturn.

• GBPUSD – The BRITISH POUND nears the 1.35 close as Manufacturing Production slacks. Cable ended the session very close to the 1.35 level, managing to hold firm yet on a bearish note, despite during the session the pair was found trading on lows of 1.3484. The report slowed from 0.7% to a better than expected figure of 0.4%. Currently GBPUSD trades 25 pips below the 35 hurdle.
• EURUSD – EURO surges to 1.20 against DOLLAR following PBOC, reverses near daily open. EURO rose to a daily high of 1.2017 following Chinese reports that PBOC is thinking to reduce US Debt Purchases as DOLLAR weakened. EURO rose 85 pips but reversed by day’s end near the daily open of 1.1935, forming an indecision candle. Investors wait for ECB’s Accounts to further exploit opportunities.
• USOIL – USOIL ends session mixed following a 3Yr high as US – Iran uncertainty weighs in. Oil formed an indecision candle yesterday after reaching a 3Yr high as investors started taking profits while the US Administration decides whether to continue with economic sanctions on Iran. The high of $63.53 has marked a recent top and the next level price must break for further gains.
• XAUUSD – GOLD gains while the US DOLLAR counterpart weakens following PBOC’s report. Spot GOLD gained nearly $5/oz yesterday following Chinese news that took USD many pips lower. Despite a high of 1328 was reached, price retraced to a daily close of 1316. GOLD is likely to move along EURUSD and opposite to USDJPY.

• US Indexes – DJ fell 0.07%, S&P 500 by 0.11%.
• European Indexes – UK 100 trades 0.06% higher, DE 30 plummeted 0.72%.
• Asian Indexes – ASX 200 plunged 0.48%, Nikkei -0.33% and Hang Seng trades 0.08% higher.
• US Equities – BoA rose by 0.93%, Exxon Mobil declined by 0.80%.