The economic calendar is a bit light today with only Swiss PPI and euro zone industrial production. Swiss PPI will be under closer examination after last week’s contraction in Swiss CPI while euro zone data is likely to continue with the trend of poor data releases. Traders will be looking towards this week’s euro zone GDP data for additional economic weakness.
The US dollar saw a mixed trading day today, as positive news boosted risk taking in the marketplace which led to gains for currencies like the euro and British pound. News that the Bank of England will inject an additional 50 billion pounds to support the economic recovery, combined with word that Greece had finally reached an austerity deal, caused investors to shift their funds away from safe-havens. As a result, the EUR/USD …
Euro zone economic data out this morning shows the French and German economies performed in-line or better than consensus forecasts. However, traders need to remember that the data is not forward looking and is most likely already included in the value of the EUR. The was ZEW economic sentiment survey is forward looking and shows German investor confidence tumbled to a 3-year low, further highlighting fears of a euro zone recession.
The EUR/USD came off a two-month high today, following fresh concerns that Greece could soon default on its debt. The pair spiked as high as 1.3322 yesterday, after Greece reached a deal on austerity measures late in the European session. Hopes that the country would soon reach a debt swap deal with its creditors were dashed today, after euro-zone finance ministers demanded additional spending cuts from Greece before approving a second bailout. The …
Platinum Reaches 5 month High I always go on about Gold and Silver but never give enough respect to Platinum. Currently rising to a 5 month high due to strikes in South Africa’s’ Rustenburg Mine, which happens to be the world’s largest Platinum mine. The strike is set to go on for another week, and we cannot rule out the prospect of other workers striking in the surrounding South African mines. Due to …
The US dollar was able to extend the boost it received late last week during trading today, as negative euro-zone news fueled risk aversion and sent investors to the safe-haven greenback. Greece’s inability to reach a debt-swap agreement with its creditors sent the EUR/USD as low as 1.3026 before the pair staged a slight upward correction. Last week’s positive US jobs report helped the dollar maintain its gains against the JPY throughout the …
This morning the EUR/USD slipped below the key 1.35 level versus the USD before finding some buying interest at technical levels. Today has a large amount of data releases on the economic calendar but the political issues should not be ignored, especially in Greece as Prime Minister Lucas Papademos will have one of his first political tests.
The bears remain in control of the markets and may remain so today as liquidity could be on the light side due to the celebration of Armistice/Veterans Day. Even with the holiday a few important data releases are found on the economic calendar.
Today’s economic calendar will be highlighted by the release of the FOMC meeting minutes which are likely to show the Fed stands ready to act should inflation expectations continue to decline.
The Swedish krona continues to weaken as the USD/SEK breaks higher above its 2-year downtrend.
