EUR Forex Weekly Archive
Daily Economic News - May 16, 2008
Yesterday, the mixed economic figures releases from all the economical sectors made the EUR trade volatile and risky. The trading day started off with bullish trends for the EUR, and than reversed into coherent falling trends against its major counterparts.
The bullish inclination that was observed with the beginning of the trading day came as a result of a series of positive data coming out for the European markets. The German, French and European Gross Domestic Products (GDP) delivered better than expected figures. The German GDP came at 1.5% after last month's 0.3% mark. The French GDP came at 0.6% after last month's 0.3%, and the European GDP came at 0.7%, after last month's 0.4% figure. Such favorable results must have initiated the rising EUR trend. Later on, a bundle of data began flowing from the U.S, delivering unexpected positive figures. Relatively strong printing of the TIC Net Long-Term Transactions and the Philadelphia Fed Manufacturing indices promptly generated a rising trend for the greenback and respectively a drop of the EUR.
As for today, the European Central Bank President is expected to deliver a speech at the 9th Brussels Economic Forum as it may supply traders with important indicators for the short term trading. As always, high volatility is expected throughout his speech. Traders should follow carefully European developments, yet they are ought to keep one eye open for U.S news, as they are suppose to be more vital.
Daily Economic News - May 15, 2008
Yesterday the EUR saw volatile trends within its major pairs. The EUR\USD began the day with a falling trend as it hit a daily low of 1.5413, yet it promptly rose up to 1.5473. The only significant gain for the EUR came against the JPY. European news from yesterday included the French Consumer Price Index. This Index which measures the rate of inflation came out at 0.3%, lower than last month's 0.8% figure. Later on in the day, the European Industrial Production report was published, and released at -0.2%, better than the expected -0.3% mark, yet lower than last month's 0.3%. Also yesterday, the Council of Economics and Finances Ministers held a meeting, where all of the Euro-Zone financial chiefs expressed concerns over the growing levels of inflation, yet they admitted their appreciation to the European Central Bank (ECB) reactions to the rising commodities prices, and stated they have full confidence that it will continue to act this way.
As for today, a bundle of data is expected for the EUR. The German, French and European Gross Domestic Product (GDP) reports are scheduled. These reports measure the total value of all goods and services produced by an economy. Analysts forecast positive results in all three reports, and rising trends are likely in light of these forecasts, as GDP is the primary gauge of an economy's health. Later on, the ECB President Jean Claude Trichet will deliver a speech. Trichet has avoided manipulating the European interest rate for the last month, despite rising commodities prices. Investors will follow his speech very closely, in the event that he gives any clues regarding a rate change, as it should instantly affect the EUR.
Traders should remain very keen today, as high volatility is expected. Lots of data coming from the Euro zone and the U.S should create fluctuation in the market. Traders should use this opportunity to create short-term profits.
Daily Economic News - May 14, 2008
Yesterday, the EUR experienced mixed momentum as it lost against the USD, and gained against a majority of its other counterparts. No economic data was released from the Euro- Zone and the trading of the EUR was fueled by past feelings of traders.
The only economic news directly regarding the EUR was the Eurogroup meeting which was held yesterday. During this meeting, Eurogroup president Jean-Claude Juncker said that financial markets finally understand the G7's message last month on foreign exchange. Juncker did mention the inflation concern adding that soaring food and Crude Oil prices are supporting that concern. The French and German stock markets did rise yesterday simultaneous to the mild rise of the EUR. However, against the USD, the EUR could not withstand as the greenback received a boost from strong U.S. economic releases.
After a silent day in terms of Euro- Zone data releases, today should be more interesting. Scheduled for today are the releases of French Consumer Price Index and Euro Industrial Production. Traders should also pay attention to the press conference following the Council of Economics and Finance Ministers meeting, where various financial matters will be discussed. Another important announcement will be the Bank of England Inflation Report, which is important to the EUR's future because of England's close ties and geographic location to the Euro- Zone. The forecasts of the French CPI and Euro Industrial Production are expected to be lower than in the previous month, therefore traders should expect bearish momentum from the EUR.
Daily Economic News - May 12, 2008
Last week saw volatile sessions within Euro pairs. The EUR\USD first peaked to 1.5548, but later on made a straight downfall to 1.5311, to finish the trading week at the rate of 1.5482. Regarding other currencies, the Euro grew bullish momentum against the GBP, but underwent bearish trend vs. the JPY.
Amazingly enough, Jean Claude Trichet, President of the European Central Bank, remained hawkish once again during a speech at an ECB Press Conference. Amidst fears of economic slowdown within the Euro-Zone, Trichet signaled toward leaving interest rates for the EUR unchanged, stating in to be the leading key to control euro zone inflation pressures.
Skepticism grew last week over the bearishness of the EUR recently and the affect it was having on the EUR/USD pair. Economic data from the region though better than the week before was still bad enough to give Forex traders second thoughts about how much the EUR could see profits this week.
Today, Trichet is expected to deliver another speech, and traders should expect it to be the main volatile catalyst for today.
