By Peter Robinson – Greek debt worries returned to dominate the forex market yesterday. Investor concerns increased yesterday after the European Union (EU) published the Greek budget deficit. Greece may need to use the bailout offered by the EU as traders don’t believe Greece would be able to repay its debts despite moves to cut expenses.
The EUR has taken a dive against the USD to its lowest price in a year. The EUR also declined against JPY and other major counterparts. Today we have news mainly from the U.S. which should support its trend up against its major counterparts. The U.S. economy is showing signs of recovery, which also was acknowledged yesterday by Obama in his speech to Wall Street.
Today’s leading indicators:
8:00 GMT: EUR – German Ifo Business Index
- This survey is highly regarded and it previously came in much better than expected. The data released today is anticipated to be positive and signal economic expansion in Germany. This is also a positive indication about wider Europe, but doubts exist whether it will be enough to boost the EUR against its major counterparts.
12:30 GMT: USD – Core Durables Goods
- This indicator measures manufacturing activity. After positive data released yesterday for home sales and unemployment, it would interesting to see if manufacturers are indeed increasing activity. Better than expected results would support commodities, mainly Crude Oil, if results turn less than expected, Oil prices could decline sharply.
14:00 GMT: USD – New Home Sales
- Investors received great news by existing home sales yesterday and would be pleased to see improvement in new home sales too. The real estate industry is the most sought after indicator after unemployment rates. Continual improvement in these indicators would increase consumer and investor confidence in regards to the U.S. economy.
Forex Market Analysis provided by Forex Yard.
