By FXEmpire.com
Analysis and Recommendations:
The EUR/USD closed slightly down but above $1.27. The European currency is now exchanged at $1.2714 after a high of $1.2749 and a low of $1.2665.
Markets are flirting with stability but still biased towards risk aversion. The USD is marginally stronger, with currencies flat to down 0.25% since yesterday’s close; European equities are weak; but US futures are flat and bond markets are calm. Markets are teetering on the verge of a spike in risk aversion.
There was little in the way of supportive eco data out of Europe today and ongoing problems with Greece and Spain, which continue to escalate with no intervention from the EU and seemly no course of action. It seems that most of the unfolding events are just running out of control
Investors continue to shed all assets tied to Europe, including currencies, commodities and equities. Gold climbed today as investors took advantage of depressed prices to buy low. While crude oil continued to decline.
Once again on Friday the eco calendar is very thin, just local and regional indicators, nothing to affect the currency or support the markets.
Investors’ moods are negative. US data was market neutral, the jobless claims held to the same as last week, while the Philly Fed Manufacturing Index came in well below forecast, which can be balanced against an above Empire State Index yesterday that was way above forecast.
It seems to day was bad news all around, as the USD continued to power up for the 14th straight day, trumping all of its trading partners even the yen declined today even thought there was some positive data released in Japan today.
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 May 17, 2012 actual v. forecast
|
May 17 |
JPY |
GDP (QoQ) |
1.0% |
0.9% |
-0.2% |
|
JPY |
GDP Price Index (YoY) |
-1.2% |
-1.4% |
-1.8% |
|
|
JPY |
Industrial Production (MoM) |
1.3% |
1.1% |
1.0% |
|
|
Foreign Securities Purchases |
-2.08B |
9.34B |
12.54B |
||
|
USD |
Initial Jobless Claims |
370K |
365K |
370K |
|
|
CAD |
Wholesale Sales (MoM) |
0.4% |
0.4% |
1.5% |
|
|
USD |
Continuing Jobless Claims |
3265K |
3235K |
3247K |
|
|
USD |
Philadelphia Fed Manufacturing Index |
-5.8 |
10.0 |
8.5 |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
The calendar for the end of the week is very thin. There should be little eco data that will affect the markets
Government Bond Auctions
Date Time Country
May 21 09:10 Norway
May 21 09:30 Germany
May 21 10:00 Belgium
May 22 08:30 Holland
May 22 08:30 Spain
May 22 17:00 US
May 23 09:10 Sweden
May 23 09:30 Germany
May 23 14:30 Sweden
May 23 17:00 US
May 24 15:30 Italy
May 24 17:00 US
May 25 15:30 Italy
Click here a current EUR/USD Chart.
Originally posted here
