By FXEmpire.com
Analysis and Recommendations:
The EUR/USD added a few pips in a relatively quiet trading day. On a very quiet eco day, the news and rhetoric were also turned down. The day was like the calm before the storm, commodities, equities and currencies were unusually still.
Market sentiment remains negative towards Europe and any asset class tied to the EU.
Markets are flat to mixed across multiple asset classes this morning. Asian equities closed sharply lower partly on yesterday’s after math in European markets but also driven by further evidence of falling property prices in China. European equity benchmarks are mixed but generally posting small changes with the exception of a 0.8% drop in the FTSE100 and 0.7% rise Spanish equities. Dow futures remain in the black and are pointing to a 50 point rise at the market open. Yields on Treasuries and bunds are gently higher, Spanish and Italian yields are lower, and other peripherals like Greece and Portugal are higher. Currency markets were also mixed with crosses like the won, NZ$, A$ and Yen dropping against the USD while currencies including CAD and the Scandinavian crosses appreciated.
There were few fresh overnight catalysts to market behavior. Moody’s downgraded Spanish banks following the North American market close yesterday.
Further, the rhetoric regarding Greece’s challenges turned up a notch overnight. A WSJ interview with the head of Greece’s left wing Syriza party gets the blackmail message across fairly pointedly
German Finance Minister Schaeuble retorted “We want Greece to stay in the euro. But that presupposes that Greece does on its side what is necessary to develop its economy. It’s up to the Greek politicians to explain reality, not make false promises.”
He also repeated Merkel’s line that Germany is open to suggestions targeting faster growth.
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.
Eco Data for May 18, 2012 actual v. forecast
|
May 18 |
13:30 |
CAD |
Core CPI (MoM) |
0.4% |
0.3% |
0.3% |
|
13:30 |
CAD |
CPI (MoM) |
0.4% |
0.3% |
0.4% |
|
|
13:30 |
CAD |
CPI (YoY) |
2.0% |
2.0% |
1.9% |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
May 21 |
5:45 |
CHF |
-18 |
-19 |
|
|
May 22 |
8:30 |
GBP |
3.5% |
||
|
8:30 |
GBP |
15.9B |
|||
|
8:30 |
GBP |
3.6% |
|||
|
TBD |
GBP |
||||
|
14:00 |
USD |
4.48M |
|||
|
May 23 |
8:00 |
EUR |
-1.3B |
||
|
8:30 |
GBP |
0-0-9 |
|||
|
TBD |
EUR |
-1.2% |
|||
|
10:00 |
GBP |
-8 |
|||
|
TBD |
GBP |
||||
|
14:00 |
USD |
328K |
|||
|
14:30 |
USD |
||||
|
May 24 |
6:00 |
CHF |
1.69B |
||
|
7:00 |
EUR |
46.9 |
|||
|
7:00 |
EUR |
45.2 |
|||
|
7:30 |
EUR |
46.2 |
|||
|
7:30 |
EUR |
52.2 |
|||
|
8:00 |
EUR |
109.9 |
|||
|
8:00 |
EUR |
45.9 |
|||
|
8:00 |
EUR |
46.9 |
|||
|
8:30 |
GBP |
1.8% |
|||
|
8:30 |
GBP |
-0.2% |
|||
|
8:30 |
GBP |
31.9K |
|||
|
8:30 |
GBP |
-3.3% |
|||
|
12:30 |
USD |
||||
|
12:30 |
USD |
-4.0% |
|||
|
13:00 |
EUR |
-10.7 |
|||
|
May 25 |
6:00 |
EUR |
5.6 |
||
|
7:15 |
CHF |
4.04M |
|||
|
TBD |
ALL |
||||
|
13:55 |
USD |
Government Bond Auctions (this week)
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 to read EUR/USD Technical Analysis.
Originally posted here
