The pair rebounded for the second session amid worries regarding the implementation of the measures announced by European leaders last week. Investors are keeping an eye lid on any details concerning the debt deal, where further details may divulged in the coming European finance minister’s meeting on November 7-8.
The outlook in the coming period will rely on the implementation of euro area officials to the measures announced last week to contain the debt crisis in addition to the monetary policy adopted by both Federal Reserve and ECB, Secretary General of the OECD Angel Gurria said. Eyes will be on the G-20 leaders as they meet in Cannes, France, on Nov. 3-4 to continue their discussions on the repercussions of the financial crisis on global markets. Gurria said world leaders should coordinate their efforts and policies to pass the current hurdle phase which is surrounded with uncertainties.
Moreover, the dollar was boosted against major currencies after the BoJ’s third intervention on the FOREX market this year which took place on Monday. Amid interventions from central banks, concerns increase that world economies need a boost and thereby things are not going well.
On Tuesday, the Swiss economy will release retail sales for the year ending Sep. at 07:15 GMT followed by PMI manufacturing for Oct., as of 07:30 GMT. In the U.S., the main focus will be on ISM manufacturing for Oct., as of 14:00 GMT, which is predicted to show a widening expansion to 52.3 from 51.6 in September. Data from both economies is expected to have an impact on the pair’s movements as investors are now concentrating on the latest development in main sectors to see whether there is improvement in the fourth quarter after the sluggish growth pace which encountered global economies.
Collect your free Forex Bonus now.
