By TraderVox.com
The GFK German Consumer Climate report to be released on Tuesday will be one of the main events of the week. The survey takes into account opinions of 2000 consumers and it is expected to remain stable at 5.7 after it dropped from 6 points in the last reading. The German CPI which is expected on Wednesday will probably show that German inflation remained at 0.2 percent for June. German Import Prices is another report that will affect the EUR/USD cross scheduled for release on Wednesday at 0600hrs. This report showed a drop of 0.5 percent last month and a similar fall is expected this month.
A two-day EU Economic Summit scheduled to start on Thursday will be another consideration for investors as they trade the EUR/USD pair this week. There is a lot of pressure on the EU leaders to come up with a solution after the G-20 meeting emphasized on the need for EU leaders to come up with solutions for the crisis. German, French, Spanish and Italian leaders meet in Rome where they came with positive report for the region establishing a 130 billion-euro pact.
Thursday will also be a day when the German Unemployment Change report will be released at 0755hrs GMT. There has been disappointment in Europe’s locomotive employment data which have been declining in the recent months. In May an increase in the number of Unemployed people is expected to rise by 4,000. The Retail PMI will be released at 0810 hrs GMT with the market expecting a further decline in the index. This index has been negative since November last year.
Friday will be another day with major releases for this pair. The Italian 10 year bond auction will be the main event. The Spanish yield has rocketed to new high and the last Italian 10-year bond yield was above 6 percent. This time a more than 6.0 percent yield is expected but a lower yield will calm the market. At 0600hrs GMT, the market will be treated to a German Retail Sales release which is expected to show deterioration with a 0.1 percent increased predicted. The French Consumer Spending will be the last major event to close the week.
This week’s outlook for the EUR/USD is bearish if reports come out as expected.
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