By Ashley Smith – The Euro-Zone’s crisis continues to impact the forex market. This week’s trading begins with an extraordinary kick-off as the EUR/USD plunges to a 4-year low. The EUR/USD dropped to as low as the 1.2233 level, in what doesn’t seems to be the last stop in the Euro’s bearish voyage.
After the EUR/USD reached an 18-month low, it seems as if a technical correction might be in place. However a speech by the ECB President, Jean-Claude Trichet, has pushed the Euro further down. Trichet said that there need to be major improvements to prevent bad behavior, to ensure effective implementation of the recommendations made by peers and ensure real and effective sanctions in the case of breaches. This speech had put extra pressure over the Euro, and the result is listed above.
Traders are advised to follow every development on this issue, and also to follow these economic publications:
• 12:30 GMT, U.S. Empire State Manufacturing Index – This is a survey of about 200 manufacturers in New York state that are asked to rate their general business conditions. If the end result will reach above last month’s result of 31.9, it is likely to support the Dollar.
• 13:00 GMT, U.S. Long-Term Purchases – This report measures the difference between foreign securities purchased by U.S. citizens to U.S. securities purchased by foreigners. If the end result will beat expectations for 50.5B, then the Dollar is likely to rise as a result.
Forex Market Analysis provided by Forex Yard.
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