Economic News
USD – US Trade Balance Set to Impact Dollar
The US dollar was bearish overall yesterday, amid the continued deadlock in “fiscal cliff” negotiations between US Congressional leaders and President Obama. If the negotiations fail to progress, a set of tax increases and budget cuts threaten to push the US back into recession. Against the safe-haven Japanese yen, the greenback fell some 40 pips during European trading, eventually trading as low as 82.11, before moving back up to the 82.20 level. The USD/CHF fell close to 30 pips during mid-day trading, eventually reaching the 0.9330 level.
Turning to today, the main piece of US news is likely to be the Trade Balance figure, set to be released at 13:30 GMT. Analysts are predicting the indicator to come in at -42.4B, which would represent a decrease over last month. A worse than expected indicator today could result in the dollar extending its bearish trend against both the JPY and CHF. Additionally, traders will want to pay attention to any announcements regarding the “fiscal cliff” negotiations, as they are likely to impact the dollar.
EUR – Euro-Zone Uncertainties Weigh Down on Euro
Following the announcement that the Italian Prime Minister would soon be resigning, investors spent most of the day yesterday trying to determine how the news would affect the euro-zone economic recovery. As a result, the euro fell within reach of a two-week low against both the USD and JPY, before seeing modest upward movement later in the day. After falling as low as 1.2894 during the overnight session, the EUR/USD was able to bounce back to 1.2930 during mid-day trading. Against the yen, the euro traded as low as 106.04 before moving back to the 106.34 level later in the day.
Today, the main piece of euro-zone news is likely to be the German ZEW Economic Sentiment figure, scheduled to be released at 10:00 GMT. Analysts are forecasting the indicator to come in at -11.4, slightly higher than last month’s result of -15.7. Better than expected news today, could calm investor fears that the ECB is considering an interest rate cut, which would lead to risk taking in the marketplace and bullish movement for the euro.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
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