By FXEmpire.com
Analysis and Recommendations:
The EUR/USD dipped today at trade at 1.2231 after two days of market elation over statements by ECB President Draghi and resounding support from Merkel and Hollande, traders took the weekend to look at what plans or course of action would be taken. After the grand announcements that seems to be no follow through as of yet. Junker from the Eurogroup said that the ECB is going to follow through with the plans announced on June 29th to purchase government debt and used the EFSF.
President Draghi will meet with Bundesbank President Weidmann to talk policy, as Draghi is set to discuss rate cuts, bond purchases, and the potential for a new LTRO. Eurozone confidence indicators remain challenged, and PMIs set to be released later this week are expected to show ongoing difficulties across the region. The urgency for ECB action was prompted by the recent rise in Spanish and Italian government bond yields, forcing Draghi to talk of doing ‘whatever it takes preserve the euro’ and helping to stem the decline in EUR that fell toward 1.2050 on July 24th. Spain’s 10Y yield is currently at 6.59%, while Italy’s is at 6.03%, the latter of which had a relatively strong debt auction this morning. Regardless of the outcome of this week’s events, the path for EUR remains tilted to the downside as ECB action will spur further declines relative to the USD, while conversely, the absence of any effective effort will force market participants to further reduce risk and sell EUR.
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 July 30, 2012 actual v. forecast
|
Date |
Time |
Currency |
Importance |
Event |
Actual |
Forecast |
Previous |
|
Jul. 30 |
00:50 |
JPY |
Industrial Production (MoM) |
-0.1% |
1.5% |
-3.4% |
|
|
02:00 |
AUD |
HIA New Home Sales (MoM) |
2.8% |
0.7% |
|||
|
10:20 |
EUR |
Italian 10-Year BTP Auction |
5.96% |
5.82% |
|||
|
11:00 |
GBP |
CBI Distributive Trades Survey |
11 |
15 |
42 |
Upcoming Economic Events that affect the CHF, EUR and GBP
|
Date |
Time |
Currency |
Event |
Forecast |
Previous |
|
Jul 31 |
6:45 |
EUR |
0.4% |
||
|
7:55 |
EUR |
7K |
|||
|
9:00 |
EUR |
2.4% |
|||
|
9:00 |
EUR |
11.1% |
|||
|
Aug 1 |
1st-8th |
GBP |
1.0% |
||
|
7:15 |
EUR |
41.1 |
|||
|
7:45 |
EUR |
44.6 |
|||
|
8:30 |
GBP |
48.6 |
|||
|
Aug 2 |
7:00 |
EUR |
-98.9K |
||
|
7:15 |
CHF |
6.2% |
|||
|
7:30 |
CHF |
48.1 |
|||
|
8:30 |
GBP |
48.2 |
|||
|
11:00 |
GBP |
375B |
|||
|
11:00 |
GBP |
0.50% |
0.50% |
||
|
11:45 |
EUR |
0.75% |
0.75% |
||
|
12:30 |
EUR |
||||
|
Aug 3 |
8:30 |
GBP |
51.3 |
||
|
9:00 |
EUR |
0.6% |
Government Bond Auctions
Date Time Country
Jul 31 00:30 Japan
Jul 31 09:30 Belgium
Aug 01 09:30 Germany
Aug 01 10:00 Norway
Aug 01 13:00 US
Aug 02 08:30 Spain
Click here for updated EUR/USD News.
Originally posted here
