By FXEmpire.com
Analysis and Recommendations:
The EUR/USD is trading at 1.2225 after retracing yesterday’s gain down 0.3% against the USD after Angela Merkel suggested she has some doubt that the European project will work. Most of the EUR crosses are still under tremendous pressure, with EURSEK reaching a new 12-year low; EURAUD and EURCAD at or within a few points of record lows; and EURGBP at levels not seen since 2008. EUR is under pressure. News flow has been light, with some focus on Greece’s likely request for a bridge loan as it faces the August 20th EUR3.1bn bond redemption (held by the ECB).
Market mood was downbeat after Federal Reserve Chairman Bernanke did not commit to any action, dashing market hopes of a quantitative easing in the immediate run. Economic data out of china continue to thwart financial markets with another round of bleak numbers and is calling for a ground reality check that a hard landing could become inevitable for the economy. After restraining from any more easing yesterday before the senate, Bernanke is all set to dictate market moves into the evening session as he prepares to give a semiannual report on the U.S economy before the house. With the housing sector in the U.S showing signs of consolidation after lingering in the doldrums since the recession in 2009, the housing starts and building permits figures would be keenly watched for into today’s US session to substantiate renewal in the sector.
Also, in the limelight ahead this week would be the German parliament vote on Spanish bank aide on Thursday, after Euro zone finance ministers agreed last Monday on a rescue package of up to EUR100 billion for Spanish banks. Overall, the day is likely to remain incarcerated to the Fed and the U.S economic data.
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 July 19, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul. 18 |
JPY |
Monetary Policy Meeting Minutes |
|||
|
GBP |
Average Earnings Index +Bonus |
1.5% |
1.4% |
1.4% |
|
|
GBP |
Claimant Count Change |
6.1K |
5.0K |
6.9K |
|
|
GBP |
MPC Meeting Minutes |
||||
|
USD |
Building Permits |
0.755M |
0.765M |
0.784M |
|
|
USD |
Housing Starts |
0.760M |
0.745M |
0.711M |
|
|
USD |
Fed Chairman Bernanke Testifies |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jul 19 |
6:00 |
CHF |
2.48B |
|
|
8:00 |
EUR |
4.6B |
||
|
8:30 |
GBP |
1.4% |
||
|
12:30 |
USD |
|||
|
14:00 |
USD |
4.55M |
||
|
14:00 |
USD |
-16.6 |
||
|
Jul 20 |
6:00 |
EUR |
-0.3% |
|
|
8:30 |
GBP |
15.6B |
Government Bond Auctions
Date Time Country
Jul 19 00:30 Japan
Jul 19 08:30 Spain
Jul 19 08:50 France
Jul 19 09:30 UK
Jul 19 09:50 France
Jul 19 15:00 US
Jul 19 17:00 US
Jul 23- n/a UK
Jul 23 09:30 Germany
Jul 24 08:30 Netherlands
Jul 24 08:30 Spain
Jul 24 15:30 Italy
Jul 24 17:00 US
Jul 25 09:30 Germany
Jul 25 15:30 Italy
Jul 25 17:00 US
Jul 26 00:30 Japan
Jul 26 09:10 Italy
Jul 27 09:10 Italy
Jul 27 17:00 US
Click here for updated EUR/USD News.
Originally posted here
