By Rita, ForexYard – The European single currency fell against the U.S dollar and Japan’s currency Monday as short-term market players sold the common currency, which often tracks equities, as share markets across Asia weakened. The EUR traded at $1.3467 from $1.3506 and at Y123.96 from Y124.47 late Friday.
The 16-nation currency weakened against the USD after European Union finance ministers told Greece to brace itself for the International Monetary Fund’s conditions on a bailout package. Although worries about Greece continue to weight on the EUR, the upcoming Tuesday will be dominated by economic indicators, with two major surveys to rock the European currency:
06:00 GMT EUR German PPI
– After a leap two months ago, German producer prices took a break and remained unchanged last month. Given the rise in commodity prices, this inflation indicator is expected to rise by 0.5% this time
09:00 GMT EUR German ZEW Economic Sentiment
– What may benefit the European currency most is this survey of German institutional investors and analysts. In the past 6 months, the ZEW economic sentiment has been on the fall, hurting the Euro almost each time.
– This time, it’s predicted to edge up from last month’s score of 44.5 to 45.2 points. This survey of 350 analysts and institutional investors always rocks the Euro. If the number comes in line with or higher the EUR/USD cross may extend its gains above 1.3555.
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