Greek referendum is abandoned, eyes on NFP

• The euro plummeted yesterday after the European Central Bank surprised the markets by cutting interest rates by 25 basis points. Mario Draghi said during his first press conference as President of the ECB that the region may enter a mild recession in the following months. Mr. Draghi said that the vote was unanimous and that growth forecasts for 2011 are likely to be significantly lowered. Later the euro rebounded after the announcement that the plan for a Greek referendum is abandoned. Focus turns to today's confidence vote in the Greek parliament. Greek Prime Minister agreed to step down and negotiate a coalition government if he wins the confidence vote. If he fails to win the confidence vote then an early election will take place. The G20 leaders are meeting in Cannes to discuss about the eurozone debt crisis including the strategy adopted should Greece exit the eurozone. Versus the dollar, the euro fell to 1.3659 from 1.3818 but later rebounded to 1.3854.
• The US dollar was softer against a basket of currencies yesterday. Economic data disappointed investors after weaker than expected US ISM-Manufacturing data raising worries about the fragile US recovery. All eyes turn to the Non Farm Payrolls and the US unemployment rate expected later today.  
• The Australian dollar advanced during yesterday's US session supported by a shift in risk sentiment. Today, the Aussie edged fell after the Reserve Bank of Australia monetary policy statement was revealed. RBA lowered its forecasts for economic growth and inflation adding to speculation for another interest rate cut. Versus the dollar, the Aussie jumped to 1.0445 from 1.0202 and today the pair fell to 1.0365.
• Oil prices edged higher rising to 94.58 dollars a barrel from 90.79. Gold rose to 1765.95 dollars an ounce yesterday from 1722.64. Silver jumped to 34.87dollars an ounce from 33.25.

¹data generated by Trading Central^TM, ²data obtained from easy-forex Inside Viewer^TM

³at the time of writing

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