The euro was trading at $1.1047 after jumping 1.6% yesterday, its best day

• The main event due today is U.S inflation data, a particular focus given the Fed meets next week
• Sterling was steady having jumped 0.65% overnight along with the euro
• Traders now await a meeting of the European Central Bank later in the day

Forex market

The euro held most of its overnight gains today, having posted its steepest daily jump in nearly six years after a meeting between Ukraine's and Russia's foreign ministers and easing oil prices took some of the recent panics out of markets. 

Traders now await a meeting of the European Central Bank later in the day for any signs of how Russia's invasion of Ukraine will affect monetary policy. U.S inflation figures are also due, which could further guide expectations for the Federal Reserve's meeting next week. 

The euro was trading at $1.1047 after jumping 1.6% yesterday, its best day since June 2016, along with gains in European stocks and a selloff in bonds. The common currency had dropped to a 22-month low of $1.0804 earlier in the week, weighed down by the impact of Russia's invasion of Ukraine on European growth.

Economic Calendar

 A glance across the market, in all things eurozone especially, could leave any casual observer forgiven for assuming that the war in Ukraine might have ended overnight. Not so, sadly. They attributed the euro's gains to some optimism ahead of a meeting between Russia and Ukraine's foreign ministers - the first meeting between the two since Russia invaded Ukraine two weeks ago - and reports that the European Union was discussing bond issuance to finance energy and defense spending.

Elsewhere, sterling was steady at $1.3163 having jumped 0.65% overnight along with the euro, while the safe-haven yen was at 116.09 per dollar, its lowest in a month. The dollar index was at 98.163, after tumbling 1.2% overnight amid the euro's surge, and hurt, along with the yen, by a rise in sentiment towards riskier assets like equities. The other main event due today is U.S inflation data, a particular focus given the Fed meets next week and is widely expected to raise its benchmark overnight interest rate by a quarter of a percentage point.

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Euro

The single currency held most of its overnight gains today, having posted its steepest daily jump in nearly six years after a meeting between Ukraine's and Russia's foreign ministers and easing oil prices took some of the recent panics out of markets. Traders now await a meeting of the European Central Bank later in the day. Overall, the EUR/USD traded with a low of 1.0884 and a high of 1.0665 before closing the day around 1.0934 in the New York session.

Yen

The Japanese Yen traded lower yesterday. Japanese investors in February sold the most overseas debt in a month in nearly two years on concerns over monetary tightening by the world's major central banks and an escalation in the Russia-Ukraine conflict. The total sales of foreign bonds and equities in the first two months of this year stood at 2.46 billion yen. Overall, the USD/JPY traded with a low of 114.63 and a high of 115.53 before closing the day around 114.83 in the U.S session.

British Pound

The British Pound rebounded against the U.S. dollar in yesterday’s session as a drop in oil prices and an upswing in sentiment pushed the greenback rally triggered by Russia’s invasion of Ukraine into reverse. European and U.S. stock markets were staging a tentative rebound after four straight sessions of heavy losses. Overall, the GBP/USD traded with a low of 1.3200 and a high of 1.3353 before closing the day at 1.3238 in the New York session.

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Canadian Dollar

The Canadian Dollar strengthened against its U.S counterpart yesterday as global equity markets rallied after they were pressured by Russia's invasion of Ukraine and the price of oil pulled back from a 14-year high. Global oil prices posted their biggest plunge since the early pandemic days nearly two years ago. Overall, USD/CAD traded with a low of 1.2667 and a high of 1.2789 before closing the day at 1.2735 in the New York session.

Australian Dollar

The Australian Dollar suffering a case of whiplash today as a sudden change in market mood saw stocks swing back in the black and commodity prices ease, leaving the near-term direction uncertain. In Australia, Goldman Sachs became the latest bank to bring forward its forecast for rate hikes, predicting moves in August and September rather than just one hike in November. Overall, AUD/USD traded with a low of 0.7138 and a high of 0.7235 before closing the day at 0.7231 in the New York session.

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Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 40 and lies below the neutral zone. In general, the pair has lost 1.70%.

Sterling-Yen

Currently, GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 42 reading and lies below the neutral zone. On the whole, the pair has lost 1.35%.

Aussie-Yen

Currently, the cross is trading above 14, 50 and below 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 54 reading and lies above the neutral region. In general, the pair has gained 0.06%.

Euro-Sterling

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 46 and lies below the neutral region. Overall, the pair has lost 0.35%.

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 40 and lies below the neutral region. In general, the pair has lost 0.86%.

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