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EUR’s Trends to be Set by German ZEW Economic Sentiment

admin — Fri, 27 Nov 2009 14:47:25 +0000

The EUR’s trends for the upcoming day are likely to be set by the outcome of the German ZEW Economic Sentiment publication at 10:00 GMT. The forecast is 58.9, versus the 56.9 previous result. A result matching the forecast, or even better is likely to boost the EUR. Therefore, we could see the EUR/USD cross surpass the 1.5050 level. However, a result worse than this could lead to a very bearish EUR indeed. Traders, it is highly recommended that you open your positions in the EUR’s main crosses as soon as possible.

source: forexyard.com

EUR/USD Hits $1.50 level

admin — Fri, 27 Nov 2009 14:44:38 +0000

European’s currency rose against a broadly weaker U.S. dollar yesterday after the Group of 20 promised to keep stimulus policies in place until the global economic recovery was assured. The EUR is trading about 1% higher against the U.S. dollar amid general risk appetite for high-yielding assets on Tuesday.

The European currency’s strength was in line with other global currencies that took advantage of renewed risk appetite that suggested U.S. interest rates will stay low for some time; particularly after last week’s soft U.S. jobs data

source: forexyard.com

The EUR Turns Bearish on Waning Risk Appetite

admin — Fri, 27 Nov 2009 14:30:25 +0000

The single Euro-Zone currency slid broadly on Thursday as investors’ revived safe-haven demand for the U.S. and Japanese currencies accelerated the EUR losses. The EUR weakened as equity and commodity markets fell encouraging investors to pare back exposure to risk and buy back the U.S and Japanese currencies against perceived riskier currencies. On Wednesday, the EUR climbed more than half a percent against the dollar but struggled on Thursday to break back above $1.5000.

The European currency fell 0.4% to $1.4911 vs. the U.S dollar on speculation the German economy could face a double-dip recession in late 2010 or early 2011 as extra public spending are withdrawn. The EUR currency also slid to a more than 2 week low against the Japanese yen, although later rebounding to 132.58 yen. However it was still down 0.9% for the day in volatile trading with almost 2 yen separating the day’s high and low.

The British pound depreciated for the first time in 5 days against the EUR, weakening 1% to 89.50 pence. The Pound also dropped vs. the U.S dollar 0.7% to $1.6644 today.
The Sterling fell for a 3rd day versus the U.S dollar after the Daily Telegraph said U.K. lenders are in a worse state than those elsewhere, citing the world’s largest credit-checking company. Analysts said that there are ongoing concerns about the state of the banking sector in the U.K., and that is weighing on Sterling.

source: forexyard.com

EUR Gains on Economic Recovery Optimism

admin — Fri, 27 Nov 2009 14:23:27 +0000

The EUR strengthened for the first time in 3 days versus the Japanese yen on speculation the European Central Bank (ECB) will decide as soon as next month to stop some of its emergency stimulus measures.

The European currency also gained strength against the U.S dollar on speculation the Federal Reserve will keep its stimulus measures in place and ensure Interest Rates remain low. The EUR advanced on speculation that the economic recovery remains in place spurred investors to buy higher-yielding assets. The currency was trading at $1.4981, up from $1.4851 late Friday . At the same time, against the Yen the Euro-Zone currency rose to Y133.21 from Y132.26.

The European currency could garner further support as provisional purchasing managers’ indices on the Euro-Zone manufacturing and services sector sectors released at 0858 GMT showed a further improvement in the economic activity.

Market players will be watching for ECB President Jean-Claude Trichet speech, due at 13:00 GMT. The president of the European Central Bank has moved the EUR/USD in many occasions. Recently he has advocated a strong dollar. Trichet has said before that he would make sure extraordinary liquidity measures would be phased out in a timely and gradual fashion. The market remains highly sensitive to any Trichet’s comments on liquidity, his speech will move the market either way.

source: forexyard.com