Analysis and Recommendations:
The EUR/GBP ended the day at the opening, trading in a small range and closing at 0.7998.The overall day was thin on eco data and news flows were at a minimum.
Volume was light in the US session as it is a long 3 day holiday weekend with US markets closed on Monday.
Sentiment in trade was sanguine after Italian Prime Minister Mario Monti hinted that most EU leaders support sales of joint bonds for the Euro region. However, reports that China’s leading banks may fall short of loan targets for first time in 7 years nudged the renewed mood. It remains to be seen in the coming days how the situation transpires in Europe as exit of Greece seems almost looming at this point in time.
The week has seen encouraging numbers from the U.S but the situation in Europe continue to weigh on investors. Next week could give a better indication of the U.S economic recuperation with the Nonfarm payrolls data scheduled for release. Also in line, next week is the U.S GDP figures; both heavyweight numbers could have a significant bearing on the currency and commodity prices. The recent string of weak numbers from China is raising fresh concerns about the pliability of the Chinese economy amid softening global demand and in that regards, policy easing from China could be on cards in the coming days.
The euro fell in today’s session against the USD. Risk aversion continues to be the overall theme.
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.
Economic Data for May 25, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
May 25 |
JPY |
Tokyo Core CPI (YoY) |
-0.8% |
-0.6% |
-0.5% |
|
EUR |
GfK German Consumer Climate |
5.7 |
5.6 |
5.7 |
|
|
CHF |
Employment Level |
4.05M |
4.02M |
4.04M |
|
|
PLN |
Polish Unemployment Rate |
12.90% |
12.80% |
13.30% |
|
|
MXN |
Mexican Unemployment Rate |
4.9% |
4.9% |
4.6% |
|
|
MXN |
Mexican Trade Balance |
0.560B |
1.000B |
1.575B |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Previous |
|
|
May 28 |
28th-31st |
GBP |
-0.2% |
|
|
May 29 |
All Day |
EUR |
0.2% |
|
|
10:00 |
GBP |
-6 |
||
|
13:00 |
USD |
-3.5% |
||
|
14:00 |
USD |
69.2 |
||
|
May 30 |
7:00 |
CHF |
0.40 |
|
|
8:00 |
EUR |
3.2% |
||
|
8:30 |
GBP |
1.4B |
||
|
14:00 |
USD |
4.1% |
||
|
23:01 |
GBP |
-31 |
Click here for updated EUR/GBP News.
Originally posted here
