Forex Flash: Back and forward trading could continue ahead of key events - Wells Fargo

With today's economic news benign, most foreign currencies are firmer against the US dollar, comments the Wells Fargo analyst team. "Financial markets are also in an optimistic mood overall, with most global equity markets higher and peripheral Eurozone bond markets stronger", they say. "The euro is up on firmer than expected data and with some indications surrounding the European Union finance ministers meeting that more flexibility surrounding Europe's austerity plans may be possible".

However, according to Wells Fargo, with the Italian political situation still somewhat uncertain, "back and forward trading could continue ahead of key jobs data and central bank meetings towards the end of the week".