By Peter Robinson – The Euro might have ended its two weeks rally against the greenback yesterday. After a good start the Eur/Usd almost hit $1.2500. The pair rally ended straight after Fitch Ratings’ rating agency downgraded BNP French bank rating.
The most significant data today will published at 14:00GMT, U.S. Existing Home Sales, if the figure is lower than expectation this might add to market fears about the U.S. economy which could hit a double dip recession. Right after, treasury Secretary Geithner would address the public and should provide information regarding U.S. plans to end Relief Programs.
09:00 GMT EUR German Ifo Business Climate
– A survey about business conditions and expectations for the next 6 months. The report is a leading indicator of economic health in Germany released monthly. Analysts forecast that the index would decrease to 101.2 compared to the previous month, which came 101.5. Any better than expected result could benefit with the EUR.
14:00 GMT USD Existing Home Sales
– This sector has seen a strong rise due to government programs which recently ended. Forecast are at 6.17 which is higher than previous data. If the data is indeed at that level in spite of the end of government subsidies it would support riskier currencies. Some highly regarded analysts still believe the U.S. housing market is yet to deteriorate before gradually improving in the future.
14:00 GMT USD Treasury Sec Geithner Speaks
– Fed policymakers will be making public comments again in the post-FOMC meeting period. The focus will range from monetary policy to financial system regulation. The speech will have a direct market impact as traders will be watching for clues regarding future monetary policy.
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