On Monday, movements in the market were within narrow range after the New Year holiday as investors are still not back to normal trading levels. Bearishness remained after a European manufacturing report showed that the manufacturing sector contracted for the fifth consecutive month, raising concerns the European debt crisis would haunt 2012 outlook.
German Chancellor Angela Merkel said she predicts this year to witness some turbulences andGermanywill do its best to protest the euro.
Expectations refer to seeing further incline in the pair amid the high demand on the dollar as a favorite safe haven due to the turbulences in European markets.
Yet, the improvement in Indian and Chinese manufacturing offset some of the negative sentiment after the drop in European manufacturing.
On Tuesday, as of09:30 GMT, Swiss PMI manufacturing will show a narrowing contraction to 45.4 in Dec. from the prior 44.8.
In the U.S., at 15:00 GMT, ISM manufacturing for Dec. is expected to show a widening expansion to 53.2 compared with Nov. reading of 52.7, noting that a reading above 50 means expansion and vice versa. At19:00 GMT, eyes will be in the minutes of the FOMC meeting.
The data predicted to affect the pair’s movements as the main focus this week is on manufacturing data from major economies.
At the end of this week, the main focus will be the infamous jobs report in theUnited Statesas well as manufacturing, services and minutes of the FOMC meeting. On the flip side, the Swiss economy will release PMI manufacturing and CPI.
Originally posted here
