By TraderVox.com
Tradervox.com (Dublin) – The euro-dollar pair slid last week as there was no progress made in the solving the debt crisis. Signs of weaknesses from Germany have also played a major role in weakening the euro. With the German Inflation data already out, the market will now be waiting for the Mario Draghi, the European Central Bank president’s speech, which will be held on Tuesday at 0800hrs GMT. The speech will be scrutinized for indications of any rate cut that might be coming this week. The ECB President is also expected to defend the bond-buying program that he started.
The other major report expected to shape the trading pattern of the euro-dollar is the Spanish Flash GDP report which will be released at 0800hrs GMT. The previous data showed that the Spanish economy deteriorated in the second quarter, contracting by 0.4 percent. The market is expecting another drop of 0.4 percent. German Unemployment change report will be released at five minutes to nine where an increase of job seekers is expected, reaching 10000 from 9,000 registered last time. The euro zone retail PMI will be released at 0910hrs GMT on the same day, where a contraction is expected.
The market is also waiting for the Eurogroup Conference Call where the region’s ministers are expected to discuss Greece. The Troika is also expected to discuss the debt struck country and the recent proposal to adjust the pre-bailout agreement. The German Retail Sales and the French Consumer Spending reports will be released on Wednesday morning. Together with the euro zone CPI Flash Estimates and the Unemployment rate. The market is expecting a rise in CPI to 2.5 percent which there is no change expected in the unemployment rate.
On Friday, the Italian, Spanish, and the overall euro-zone Manufacturing PMI reports will all be published starting from 0815hrs. The market is expecting weak numbers from the reports, compounding the debt crisis issues plaguing the region. With these events mostly expected to be negative for the euro. The market has a bearish outlook for the euro-dollar pair.
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