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Major Events that will Affect the EUR/USD Pair This Week
Submitted by Tradervox 1 on Tue, 24/07/2012 - 15:33
Tradervox.com (Dublin) – Poor data from the US gave the euro some strength but it could not break the resistance line at 1.2330. The cross attempted to move up but settled lower above the critical support line of 1.2150. The market will be treated to a number of events from the euro region and we are yet to see whether this historic support line will break or will hold strong. Here are this week’s events.
On Monday at 1400hrs GMT, the Consumer Confidence report for the euro zone will be released. The data is released by Eurostat and has been low in the previous releases with minus 20 reading last month. The reading indicates that consumers are pessimistic about the euro zone economy. The market has predicted a minus 20 reading this time round, the same as last month. The Flash PMI for major economies will be released on Tuesday with France starting at 0700hrs followed by Germany at 0730hrs and the figures for the whole region will be released at 0800hrs GMT. The market expects these releases to slide lower but German services sector is expected to show some growth which will be good for the euro.
German Ifo Business Climate and Belgium NBB Business Climate reports will be released on Wednesday at 0800hrs and 1300hrs respectively. The German Ifo business climate figure is expected to drop further this month to 104.8 from 105.3 figure released last month. The Belgium NBB business climate figure was at negative 13.2 points last month and it is expected to worsen further into the negative territory this month.
On Thursday, GfK German Consumer Climate and M3 Money Supply reports will be released at 0600hrs and 0800hrs respectively. This German Consumer climate survey has been stable over the last months and ticked up last month to 5.8 from 5.7 points. The survey is expected to show another increase to 5.9 this month. The ECB money supply has shown some growth standing at 2.9 percent in the last report. This is the same figure that is expected this time round.
On Friday there will be the German CPI report which will be done during the day and the Spanish Unemployment rate will be announced at 0700hrs. The German CPI preliminary reading is expected to show an increase of 0.4 percent this time round. The unemployment rate in Spain stood at 24.4 percent in the first quarter and this is expected to increase to 24.7 percent.
Most of the data from euro is expected to show weaknesses in the region’s economy but the US data is also expected to disappoint. However, the pair will be bearish over the week.
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