The Euro rallied late in the trading session after an early session setback. Advances by U.S. stocks and commodities triggered a surge in demand for riskier assets.
U.S. equity markets are trading higher overnight. On Friday tensions eased in Greece after the country formally asked the European Union and the International Monetary Fund for bailout loans. This helped drive the stock indices to their highest levels of the year.
Stronger U.S. economic reports drove traders out of risky assets, putting pressure on both gold and crude oil. April Gold surged overnight to $1126.40 before backing down. This price was inside of a retracement zone at $1120.50 to $1131.40. The stronger Dollar encouraged traders to dump higher risk assets which weakened precious metals.
Stronger global equity markets are contributing to the weakness in the Dollar as traders are once again increasing demand for more risky assets after reassessing U.S. economic data and the odds of an interest rate increase by the Federal Reserve.
