The Euro gained dramatically versus the U.S Dollar, and the Pound also has advanced. The Yen continues to test stronger values. Forex remains fast as traders react to a change in sentiment.
EUR/USD: Initial Weakness Sees a Stunning Reversal
The Euro reacted to the stronger than forecasted inflation data from the U.S initially with a burst of selling. However, as the data was digested the European currency stunningly reversed, and then surged higher. The Euro is near 1.2450 against the U.S Dollar, and is once again within the higher realms of its values. And some traders may believe the Euro can put in additional gains near term.
USD/JPY: Change of Sentiment Becoming Evident
The Yen has been strong against the U.S Dollar and is around the 106.50 juncture. The Nikkei Index has put in gains too. Japanese Revised Industrial data was better than expected this morning. The strength of the Yen since early February is a sign that sentiment regarding the Bank of Japan is changing, and investors may believe the Yen will continue to gain.
GBP/USD: Pound Gains and BoE under Microscope
The Pound is above 1.40 against the U.S Dollar as it and other major currencies have gained. While economic data from the U.K has proven rather lackluster, inflation data has been higher than expected and this fact may put pressure on the Bank of England to be more aggressive than anticipated.