By FXEmpire.com
Introduction: Out of the major currency pairs the most popular and easy to trade currency pair is the EUR/USD. It has become so popular with traders these days that even when there is no visible trade to be had it is yet traded as a matter of habit. This is of course something that should be avoided and any investor who trades this currency pair wisely can do so successfully with sizable profits at the end of the day.
The first thing with trading currencies is to realize that the EUR/USD is made up of two separate currencies although considered to be one unit when taken as a pair. The weaknesses and strengths of each currency have to be taken into consideration when trading the unit as it influences the final outcome. Another factor that is often overlooked by traders or investors is that the weakening of one currency along with the strengthening of the other currency in the pair results in the generation of pips. It is according to this that entry and exit from the Forex market has to be done in order to maintain profitability.
- The interest rate differential between the European Bank(ECB) and the Federal Reserve(FED)
- Dollar strength drives EUR/USD lower
- FED intervention to weaken the dollar the sends EUR/USD higher
Weekly Analysis and Recommendation:
The EUR/USD continued to gain, trading at 1.2639 adding all week moving up from 1.2477 as the USD lost momentum on negative eco data as investors moved from the safety of the USD to gold and the JPY.
|
Date |
Open |
High |
Low |
Change % |
|
|
Jun 15, 2012 |
1.2639 |
1.2627 |
1.2665 |
1.2592 |
0.10% |
|
Jun 14, 2012 |
1.2627 |
1.2575 |
1.2636 |
1.2543 |
0.41% |
|
Jun 13, 2012 |
1.2575 |
1.2501 |
1.2610 |
1.2474 |
0.59% |
|
Jun 12, 2012 |
1.2501 |
1.2477 |
1.2529 |
1.2443 |
0.19% |
|
Jun 11, 2012 |
1.2477 |
1.2645 |
1.2647 |
1.2451 |
-1.33% |
With the turmoil, throughout the EU including Greece, Spain and Italy, this week will be news flow and the outcomes of the Greek elections.
This is a week of volatility and press releases and statement. It will be great week to sit back and watch.
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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.
Major Economic data for the week of June 11 – 15 actual v. forecast for Euro, GPB, the Franc, and USD
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jun 12 |
GBP |
Manufacturing Production m/m |
-0.7% |
0.0% |
0.9% |
|
Jun 13 |
USD |
Core Retail Sales m/m |
-0.4% |
0.1% |
-0.3% |
|
USD |
PPI m/m |
-1.0% |
-0.6% |
-0.2% |
|
|
USD |
Retail Sales m/m |
-0.2% |
-0.1% |
-0.2% |
|
|
Jun 14 |
CHF |
Libor Rate |
|
|
|
|
USD |
Core CPI m/m |
0.2% |
0.2% |
0.2% |
|
|
USD |
Unemployment Claims |
386K |
377K |
380K |
|
|
Jun 15 |
USD |
Prelim UoM Consumer Sentiment |
74.1 |
77.5 |
79.3 |
Historical:
Highest: 1.5091 USD on Dec03, 2009.
Average: 1.3709 USD over this period.
Lowest: 1.19 USD on Jun 07, 2010.
Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD
|
Date |
Time |
Currency |
Event |
Forecast |
Previous |
|
Jun 18 |
Day 1 |
ALL |
G20 Meetings |
||
|
Jun 19 |
8:30 |
GBP |
CPI y/y |
3.0% |
|
|
9:00 |
EUR |
ZEW Economic Sentiment |
-2.4 |
||
|
12:30 |
USD |
Building Permits |
0.72M |
||
|
Day 2 |
ALL |
G20 Meetings |
|||
|
Jun 20 |
8:30 |
GBP |
Claimant Count Change |
-13.7K |
|
|
8:30 |
GBP |
MPC Meeting Minutes |
0-0-9 |
0-0-9 |
|
|
16:30 |
USD |
FOMC Statement |
|||
|
18:00 |
USD |
FOMC Economic Projections |
|||
|
18:15 |
USD |
FOMC Press Conference |
|||
|
Jun 21 |
8:30 |
GBP |
Retail Sales m/m |
-2.3% |
|
|
12:30 |
USD |
Unemployment Claims |
386K |
||
|
14:00 |
USD |
Existing Home Sales |
4.62M |
||
|
14:00 |
USD |
Philly Fed Manufacturing Index |
-5.8 |
||
|
Jun 22 |
8:00 |
EUR |
German Ifo Business Climate |
106.9 |
Click here a current EUR/USD Chart.
Originally posted here
