The EUR/USD hit a four year low during yesterday’s trading day, before recovering and ending positive at the end of a volatile trading session. The EUR managed to regain back part of its losses against the Dollar after declining for six consecutive days. Some analysts believe that the EUR/USD pair has hit a bottom and is now ready for a short term recovery.
The answer in regards to the EUR recovery may lie within today’s macro reports from Europe. Looking at the EUR/USD pair analysts fear that Germany, Europe’s largest economy, deteriorated this month. EUR/USD declined during early trading hours today. In case these reports fail to raise investors confident the Euro could end its recovery started yesterday, reaching new lows by the end of today’s session.
Traders are advised to follow these economic publications:
• 09:00 GMT, EUR – German Economic Sentiment.
This is a survey of about 350 German institutional investors and analysts which are asked to rate relative 6-month economic outlook for Germany. If the end result will turn lower than last month’s result of 53.0, as expected, it is likely to weaken the EUR against the Dollar.
• 12:30 GMT, USD – Building Permits
This report measures construction activity. If the end result will be better than expected, above 0.68M, it would further support the USD as the U.S. housing market is an important indictor for economic growth.
• 12:30 GMT, USD – Producer Price Index (PPI)
This report is a leading indicator of consumer inflation. It may serve as an indictor for consumer price index which is due later this week. Last month data came at 0.7% rise, but this month expectations are for a 0.1% rise. Better than expected result will support the Dollar
