Gold has dropped below 1600.00 USD as of trading this morning and is near 1593.00 as of this writing. The EUR has maintained its range and has climbed back from short-term lows. The JPY remains under a microscope via nervous politicians, particularly in the U.S., Europe, and probably China as Japan has not so subtly undertaken to lower the value of its own currency. Because of the Japanese manipulation Prime Minister Abe and other officials will be undertaking a global charm offensive as they visit the United States and other locales in the near future. One residual effect has started to hit Tokyo as brand name retail chains have started to increase their prices in JPY on luxury goods.
Inflation data was a mixed bag from Europe earlier today. German PPI came in above expectations and its CPI met its estimate, but France’s CPI came in below its target with a minus – 0.5% decrease. In a few hours time the Americans will publish PPI data. Of greater interest may be the Fed’s FOMC Meeting Minutes that will be released too and may give some insight into any misgivings that could be up for debate among Federal Reserve Bank members. Tomorrow PMI numbers will come from Europe while the States brings forth a host of data including weekly Unemployment Claims, CPI, and the Philly Fed Manufacturing Index reading.
It should be noted that Crude Oil did climb back to its short-term highs on Tuesday as the commodity continues to test its range. Most commodities provided choppy trading on the day as Gold continues to grab the spotlight with its recent decline.
Employment data did come from the U.K. earlier today as the Claimant Count Change beat expectations, but the official Unemployment Rate climbed slightly. The GBP has continued to lose value against the USD and is continuing to test new lows. While the JPY has garnered a lot of attention for losing ground against the Greenback, Sterling has steadily lost value since the beginning of February. And in the meantime, the AUD has merely range traded in a fairly consolidated manner during the same time period against the USD.
The broad markets continue to focus on volatility within forex, but investors are also primed and anxious about the Italian election that will take place this coming weekend and provide plenty of drama for all.