After Tuesday’s losses the European currencies regained their positions in the early hours of Friday’s trading sessions. However, despite the fact that the euro hit its high since March 8, like the Swiss franc, the recovery was reversed during the European session. This movement took place amid the new data of the old continent, indicating that the major indices have lost over 0.6%.
On the other side, both the Canadian dollar and Australian dollar have not changed their yesterday’s downtrend. The loonie has just lost parity with the dollar due to the new WTI data on barrel price listed at $ 105.63 (recovered some of their yesterday’s losses). The USD / CAD pair is able to approach the area of 1.03 the next day, though, of course, it also depends on the behavior of oil prices.
Meanwhile, the Australian dollar is coming back to its primary uptrend line that passes through the 1.0290 area. This breakdown will affect the upward direction of the loonie developing since last September. The loonie came close to its high in July 2011 (1.1085) but failed to overcome this level. The Australian dollar is closely linked to the gold prices, remaining these days within the strong correction from last year’s $ 1910 level. This fact took place due European debt crisis.
The central financial markets are recently showing the greater stability, as gold approaches the level $ 1610 per ounce. This fact is considered as very important and serves as a support for the aussie.
The key data concerning the American economy are available, as it was announced at 10:00 Eastern particularly the new home sales in February. The official figure is expected to be the best this year boosting the investors’ optimism with regard to a sustainable recovery of the world's largest economy for the near future.
Ben Bernanke, the chairman of the Fed, is expected to be presented at 1:45 p.m. to Washington, though his statement is not likely to affect the rates.
