By FX Empire.com
The EUR/USD is about to start a new hectic week with the debt crisis still center stage. Political developments will be a major focus and more auctions will add to the debt market strain as investors await the next action from European leadership.
On Monday the market will open to reaction on the new government formed inSpainas they hold the General Election on Sunday November 20 and by the time the market opens the new face of the government will show. Expectations are for the opposition People’s Party to overtake majority and end the Socialist government’s rule, the market might still find support in the news as they also support further adjustment and austerity to bring the deficit down to 4.4% by next year!
We still see the week focused on the euro area with the debate how to contain the crisis, especially as now the option of the ECB lending the IMF to lend troubled states reemerging and to see if there is more talk of it which might support the sentiment that some progress is being made.
The euro zone will start this week at 09:00 GMT with the current account figures for September, where the previous non-seasonally adjusted deficit was 6.3 billion euros, while the previous seasonally adjusted deficit was 5.0 billion euros.
The United States will join the session at 15:00 GMT with the existing home sales figures for October, with expectations that the existing homes sales could have retreated to 4.80 million houses from 4.91 millions. In addition, the monthly existing home sales index could show that sales dropped by 2.2% from the previous drop of 3.0%.
Originally posted here
