All major currencies were up against the U.S. dollar overnight, with the British pound leading the way, climbing some 0.71 percent ahead of the Bank of England interest rate decision.

The greenback weakened across the board, with the EUR/USD paring the sharp decline from the previous day to reach a high of 1.2732 during the overnight trade, and the reserve currency is likely to face increased volatility throughout the day as the Federal Reserve is scheduled to release its Beige Book Economic report at 18:00 GMT.

EURUSD: Euro US Dollar Exchange Rate Forecast

USDJPY: US Dollar Japanese Yen Exchange Rate Forecast

GBPUSD: British Pound US Dollar Exchange Rate Forecast

USDCHF: US Dollar Swiss Franc Exchange Rate Forecast

USDCAD: US Dollar Canadian Dollar Exchange Rate Forecast

AUDUSD: Australian Dollar US Dollar Exchange Rate Forecast

NZDUSD: New Zealand Dollar US Dollar Exchange Rate Forecast

We have seen yet another fresh multi-year low for USD/JPY below 83.50, and despite ongoing concerns from Japanese officials over the strength in the local currency, market participants are content on buying the Yen until proven otherwise.

By Martin Denholm

So much for that global financial crisis. The currency market has shrugged off the world’s woes over the past three years and blasted into the stratosphere.

The shortfall in the loss of U.S. jobs created a risk-on environment spurring immediate gains for equity index futures, while sinking the dollar and bonds. Yields surged as the 10-year U.S. note sank by three-quarters of a point.

The euro is pushing its luck with the dollar even ahead of the critical employment report due out later this morning. Having touched $1.2854 already this morning, the euro is teetering on a surge to perhaps $1.2925 if today’s jobs report softens the perceived need to hold dollars on safety grounds. That aside, the euro seems to have several other tailwinds boosting its appeal at the moment.

We have seen yet another fresh multi-year low for USD/JPY below 83.50, and despite ongoing concerns from Japanese officials over the strength in the local currency, market participants are content on buying the Yen until proven otherwise.

Without the usual government inventory report on Wednesday, crude oil will likely fluctuate on the usual suspects: equity market direction and the economic sentiment du jour. Gold will attempt to break the all-time highs, but a failure at these levels could lead to a substantial correction.