The EUR/USD will start a new week of volatility and uncertainty, especially after last week’s surprises and the pending fate of the Greek government and Papandreou which will continue to develop over the weekend.
The final results of a confidence motion in the Greek parliament will take effect on Monday as they are due after the market close. The survival of the government and the parties’ agreement are the key issues to see the bailout package approved and prevent political vacuum or a return to referendum.
Therefore the outlook is uncertain until we know the fate of Greece and Papandreou and agreement to move the bailout is the most important for markets to open positively while continued political chaos in debt-laden Greece will surely pressure markets further.
The euro area will start the week at 10:00 GMT with the retail sales index for September, which is expected to expand by 0.1% from the previous drop of 0.3% over monthly basis. In addition, the annual retail sales index is expected to drop by 0.3% from the prior drop of 1.0%.
Germany will join the session at 11:00 GMT with the industrial production annual and monthly index, where the non-seasonally adjusted annual index could have retreated to 7.2% from 7.7%, while the seasonally adjusted monthly index is projected to drop by 0.6% from the previous drop of 1.0%.
At 20:00 GMT the United States is expected to release the consumer credit figure for September, which could have improved to $5.100 billion from -$9.501 billion.
