By FXEmpire.com
Analysis and Recommendations:
The EUR/USD is the story of the week, with the euro falling below the 1.30 psychological price line to trade as low as 1.2984 today. Investors worried over the unsettling political situation in France and Greece as well as the continued public outcries against stern austerity measures, risk aversion became the motto of the day. The euro is currently trading at 1.3012.
Ambiguity existed in the market over the Euro Zone debt crisis after the French and Greece elections kept markets under pressure. The overall sentiments stayed vulnerable pressuring equities and commodities to move south. Spot gold declined for the second consecutive day tracking losses in euro. However, demand from India and China may provide cushion to the falling prices. Meanwhile, spot silver dropped more than a percent. Base metal segment in LME turned lower following some positive trends in the morning trades after Spain hinted that it would use public funds to bolster its struggling banks. However, strengthening dollar and uncertainty over debt worries in the Euro Zone sent prices down. Crude oil prices were hovering near its three month low in Nymex. Increase in supplies amid economic uncertainty weighed on the market. Saudi Arabian Oil Minister said that the nation was pumping around 10 million barrels per day, close to its highest in a decade, and was storing 80 million barrels in case of any disruption in supplies also weighed on prices.
Market mood continues to remain skeptical as leaders of Greece’s biggest party failed to form an agreement on forming a new government, raising eyebrows over the political stability in the debt ridden economy. In foresight, financial markets would be keenly watching out for political events in Europe for further cues. Looking into the evening, European Central Bank (ECB) chairman Mario Draghi is all set to speak on Euro system and his comments would be widely looked for in the midst of worsening fiscal deficit in the region. The Federal reserve Chairman Bernanke is slated to speak on Bank capital on Thursday and his comments, coming in the background of recent weak jobs number, would be closely watched for hints of a possible monetary easing. Also in the limelight this week are strings of economic data from China, which could give an insight into economic activities in the country. The inflation in China is projected to have eased for the month of April, opening up room for the central bank to ease fiscal tightening and propel economic recovery
Eco Data for May 8, 2012, a very thin day
|
GBP |
RICS House Price Balance |
-19% |
-10% |
-10% |
|
AUD |
Trade Balance |
-1.59B |
-1.40B |
-0.75B |
|
CAD |
Housing Starts |
245K |
204K |
215K |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
May 10 |
08:30 |
EUR |
2.40% |
2.50% |
|
|
09:00 |
EUR |
||||
|
09:30 |
GBP |
-0.3% |
0.4% |
||
|
09:30 |
GBP |
0.5% |
-1.0% |
||
|
09:30 |
GBP |
-9.6B |
-8.8B |
||
|
12:00 |
GBP |
0.50% |
0.50% |
||
|
12:00 |
GBP |
325B |
325B |
||
|
13:30 |
USD |
-0.2% |
1.3% |
||
|
13:30 |
USD |
-50.0B |
-46.0B |
||
|
13:30 |
USD |
369K |
365K |
||
|
13:30 |
USD |
3278K |
3276K |
||
|
14:30 |
USD |
||||
|
15:00 |
GBP |
0.1% |
|||
|
19:00 |
USD |
30.0B |
-198.2B |
||
|
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 09 09:10 Sweden
May 09 09:30 Germany
May 09 09:30 Swiss
May 09 09:30 UK
May 09 14:30 Sweden
May 09 15:30 Italy
May 09 17:00 US
May 10 15:00 US
May 10 17:00 US
May 11 09:10 Italy BOT auction
May 11 10:00 Belgium
Click here to read EUR/USD Technical Analysis.
Originally posted here
