By FX Empire.com
The EUR/USD was supported on Wednesday with rumors that the EU is moving forward with plans to contain the crisis and the talk was about the EFSF expansion.
The market reacted positively to a report from Britain’s Guardian newspaper that Germany and France reached a deal to expand the firepower of the EFSF to 2.0 trillion euros. Although the report was not confirmed and German sources denied it, still they said that leveraging the facility to provide around 1.0 trillion euros in firepower was possible.
We can see the market still hopeful that Europe will present something in the coming weekend, and with the uncertainty ongoing and expectations that they might do something strong and others that say they will not be as hands-over as expected will continue to reflect on the market with volatility that will extend on Thursday.
At 06:00 GMT Germany will report the Producer Price Index for September which is expected with 0.3% rebound on the month following the drop of 0.3% and on the year to hold at 5.5%.
The advanced consumer confidence for October is due at 14:00 GMT and expected to drop further to -20.0 from -19.1 in September.
The United States will start with the weekly jobless claims for the week ending October 14 at 12:30 GMT after last week they rose by 404 thousand.
At 14:00 GMT the September Leading Indicators are expected with a slightly drop to 0.2% from 0.3%. The Philadelphia Fed Index for October is expected to improve to -0.9 from -17.5 and finally Existing Home Sales for September are expected with 2.5% drop to 4.91 million from 5.03 million.
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