By FXEmpire.com
Analysis and Recommendations:
The EUR/USD saw little action today; the pair are trading at 1.2955 as the euro has gained a bit of strength after falling so dramatically this week. The pair are holding right at a major line of support and still below well down for the week.
The drama continues in European politics today. New French President Hollande is scheduled to meeting with Germany’s Chancellor Merkel on May 16th. It should be an interesting meeting as we see austerity versus growth.
Greek continues to be a never ending saga, unable to form a new government, at last reporting, the Greeks were going to appoint a temporary government and have new elections, but that does not mean this is going to happen. Public outcries against austerity have turned the field off politicians upside down as voters are just voting against everyone in office and every party that has been part of the financial and debt crisis.
The Spanish government had to step in and take over the 3rd largest bank in Spain, adding to financial burdens faced by the government. Borrowing costs are skyrocketing, growth continues to fall and unemployment soars. The word default continues to be heard more and more. Back to Greece, the likelihood of Greece leaving the euro becomes more and more practical every day.
Across the world in the US, unemployment numbers today were better than forecast, but markets and economists believe this drop continues due to the loss of benefits and the jobless just falling off of government rosters.
The greenback should remain strong over the balance of the week, as the turmoil continues in Europe.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which cover the current week and are published by Sunday before the new week begins. Daily as the markets close we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole. Please click on the links to find the most recent reports for this asset.
Economic Data for May 10, 2012 actual v. forecast
|
JPY |
Adjusted Current Account |
0.79T |
0.65T |
0.86T |
|
KRW |
South Korean Interest Rate Decision |
3.25% |
3.25% |
3.25% |
|
AUD |
Employment Change |
15.5K |
-5.5K |
44.0K |
|
AUD |
Unemployment Rate |
4.9% |
5.3% |
5.2% |
|
CNY |
Chinese Trade Balance |
18.40B |
8.50B |
5.35B |
|
GBP |
Industrial Production (MoM) |
-0.3% |
-0.3% |
0.4% |
|
GBP |
Manufacturing Production (MoM) |
0.9% |
0.5% |
-1.1% |
|
GBP |
Industrial Production (YoY) |
-2.6% |
-2.6% |
-2.3% |
|
GBP |
Interest Rate Decision |
0.50% |
0.50% |
0.50% |
|
GBP |
BOE QE Total |
325B |
325B |
325B |
|
USD |
Import Price Index (MoM) |
-0.5% |
-0.2% |
1.5% |
|
Trade Balance |
0.4B |
1.0B |
0.3B |
|
|
USD |
Trade Balance |
-51.8B |
-50.0B |
-45.4B |
|
USD |
Initial Jobless Claims |
367K |
369K |
368K |
|
USD |
Continuing Jobless Claims |
3229K |
3278K |
3290K |
|
GBP |
NIESR GDP Estimate |
0.1% |
-0.2% |
|
|
USD |
Federal Budget Balance |
30.0B |
-198.2B |
Upcoming Economic Events that affect the CHF,EUR, GBP and USD
|
May 11 |
00:01 |
GBP |
53 |
|
|
07:00 |
EUR |
0.1% |
0.1% |
|
|
09:30 |
GBP |
-1.0% |
1.9% |
|
|
10:00 |
EUR |
1.20% |
||
|
13:30 |
USD |
0.3% |
||
|
13:30 |
USD |
0.0% |
||
|
14:55 |
USD |
76.4 |
Government Bond Auctions (this week)
Date Time Country
May 11 09:10 Italy BOT auction
May 11 10:00 Belgium
Click here for updated EUR/USD News.
Originally posted here
