By TraderVox.com
Tradervox.com (Dublin) – The pair has fallen further to weaker levels last seen more than two years ago. The euro zone is expected to remain at the spotlight this week with investors keenly following events in the region. Key event in this region will be the German ZEW economic sentiment report. Despite efforts by the region’s Finance Ministers to provide aid to Spanish banks, nation’s benchmark yields remained high and forced the sovereign to establish a huge austerity program. The cross was pushed further down by positive reports from the US. Here are some of the events that will affect this pair this week.
The Euro-zone Consumer Price Index report will be released at 0900hrs on Monday. Previous reports have shown that the pace of price rises has fallen close to the ECB target of 2 percent. The market expects the CPI this time to be at 2.4 percent while the Core CPI is projected to be at 1.6 percent. Other reports to be released at the same time with the CPI data include the Trade Balance and the German ZEW Economic Sentiments. Germany has continued to hold the economic status of other countries in the euro zone with its huge surplus. Previous data showed a huge surplus of 6.2 billion Euros and the same figure is expected this time round. Economic Sentiment in Germany is another report that has a great effect on the euro. The euro felt the pinch when the figure turned negative last month registering -16.9 points. The figure is expected to increase to -14.5; however, there is also a greater possibility that the figure might remain close to -20.0 points.
Another event that will be tracked by investors is the Finnish Parliament discussion on Spanish bailout. The result of such discussion will add to the issues surrounding Spanish bailout with Germany having to deal with some legal issues concerning the bailout. This discussion will be held on Thursday and the market is expected to be rocked. Another event on this day will be the Current account figure announcement for the euro zone. The report is expected to show a surplus of 4.6 billion Euros. On Friday, the German PPI will be the major event. May result showed a decline to -0.3 percent and further drop is expected this time.
These events and reports will most probably result to weaker euro; hence the outlook for the EUR/USD remains bearish for this week.
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