FOREX Daily Outlook by Easy-Forex.com

Weaker than expected German IFO survey does little to shift Euro. BoJ minutes set for release today.        

CURRENCY TRADING SUMMARY – 26 FEBRUARY 07 (23:30GMT)
                                   

• U.S. Dollar Trading (USD) the dollar was mixed against all other majors on Friday to end the week, on the back of weak economic data and a trend in impressive data from other regions especially the Euro zone. In US share markets the NASDAQ fell by 9 points (-0.39%) and the Dow Jones also dropped by 38 points (-0.3%). Crude Oil rose to a nine week high on the back of Iran’s nuclear dispute with the UN causing the US to tighten supplies. As a result Oil was up by US$0.19 a barrel to US$61.14. Looking ahead, Monday will see a quiet start to the week in terms of economic data before the volume increase considerably. 
• The Euro (EUR) strengthened against the dollar on the back of German economic data supporting the case for future rate hikes. The German IFO business sentiment survey (for the month of Feb) released on Friday, came in softer than expected but did little to affect the Euro as investors remained confident that an increase in interest rates was imminent. Overall, the Euro traded within a range of a low 1.3102 and a high of 1.3188 before closing at 1.3162 in the New York session.
• The Japanese Yen (JPY) the JPY remained fairly soft against the Dollar but slipped to record low against the Euro reaching 159.63 before surrendering to gains at 159.37. Overall the JPY traded within a range of low 120.93 and a high of 121.64 before closing at 121.03 in the New York session. Looking ahead the BoJ will release the minutes from its meeting last week where an 8 to 1 vote saw interest rates reach a decade high at 0.50%.   
• The Sterling (GBP) rose to a week high against the Dollar and the Euro on Friday after a BoE official expressed a concern about inflationary pressures, reigniting talk of a near term interest rate hike. GDP data for the fourth quarter was confirmed at 0.8%. Overall the GBP traded within a range of a low 1.9539 and a high of 1.9652 before closing at 1.9634 by the end of the New York session. Looking ahead, the BoE Blanchflower will be speaking today with markets sure to pay attention on any further indication of future interest rate decisions.   
• The Australian Dollar (AUD) strengthened against the Dollar at the end of the week following poor US economic data. Overall the AUD traded within a range of a low 0.7878 and a high 0.7925 before closing at 0.7918 at the New York session. Looking ahead a quiet beginning to the week.    
• Gold (XAU) strengthened on the back of higher Oil process. Gold rose by US$3.70 an ounce to US$686.70.