- Traders kept a close eye on sterling and the euro on Tuesday after the currencies suffered hefty losses in the previous session on uncertainty over Britain's membership in the European Union, while a rally in commodity prices boosted the Australian dollar. And The dollar index is up 0.774 to 97.374.
The pound was last at $1.4151 GBP=D4, having slid as far as $1.4057 GBP=D4 - a low not seen since March 2009. It fell nearly 2 percent, posting its biggest one-day drop in almost six years.
Sellers took aim at the currency after London Mayor Boris Johnson, one of the country's most popular politicians, announced his support for Britain to leave the EU.
He gave the "Brexit" camp a much-needed figurehead and raised the risk that Britons will vote to exit the bloc in the June 23 referendum.
- Consumer prices were flat (0.0%) m/m on a headline basis, which was actually a tick better than the -0.1% reading expected, but the more impressive reading by far was the “Core” CPI. Consumer prices excluding volatile food and energy components actually rose 0.3% m/m, driving the year-over-year rate to 2.2%, the highest reading since 2012.
- The United States will call on G20 countries this week to use fiscal policy in order to boost global demand, a senior U.S. Treasury official said on Monday.
"We will urge greater use of policy space, including fiscal space, to bolster global demand. That would lead to strengthened confidence and I would expect reduce volatility," the Treasury official said in a preview call with reporters ahead of a G20 meeting later this week in Shanghai, China.
- Oil prices recorded hefty gains in North America trade on Monday, with West Texas Intermediate futures climbing above the $33-level after the International Energy Agency said it expected U.S. shale production to fall this year and next.
Crude oil for April delivery on the New York Mercantile Exchange surged $1.70, or 5.35%, to trade at $33.45 a barrel by 14:45GMT, or 9:45AM ET, after rising by as much as $1.88, or 5.6%, to an intraday peak of $33.63, the most since February 1.
The International Energy Agency said in its medium-term outlook on Monday that U.S. shale oil production was expected to fall by 600,000 barrels per day this year and another 200,000 bpd in 2017.
Prices found further support amid indications U.S. oil drillers are cutting back on production. According to industry research group Baker Hughes, the number of rigs drilling for oil in the U.S. decreased by 26 last week to 413, the ninth straight weekly decline.
- WTI levels to consider: at the moment the barrel of WTI is up 6.05% at $33.66 facing the next hurdle at $34.82 (high Jan.28) ahead of $35.48 (76.4% Fibo of $38.39-$26.05$) and finally 37.61 (100-day sma). On the other hand, a break below $30.46 (20-day sma) would open the door to $28.70 (low Feb.16) and then $26.05 (low Feb.11).
Reference: Forex, Reuters, Investing, FXStreet
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