By Natalie R. – Last week’s trading session was characterized by the recovery of the U.S. dollar. The recovery took place as a batch of disappointing data from the U.S. economy has created speculations that a global economic recovery might be halted. As a result, the yen, which is considered to be a safe asset as well, strengthened, and energy prices, such as crude oil, dropped.
If the negative data will continue to dominate this week as well, these trends are likely to precede, especially the bullish dollar. Traders are advised to follow the major publications, mainly from the U.S. and the euro-zone.
Here are today’s leading news events:
• 09:00 GMT, Euro-zone’s Consumer Price Indices (CPI) – The CPI is the main gauge of the region’s inflation. If the end result will reach above expectations for 1.7%, the euro might strengthen as a result.
• 12:30 GMT, U.S. Empire State Manufacturing index – This is a survey of about 200 manufacturers in New York state, who are asked to rate their general business conditions. A positive data, above 8.1, might erase some of the dollar’s gains.
• 13:00 GMT, TIC Long-Term Purchases – This indicator measures the difference between foreign long-term securities purchased by U.S. citizens, to ones purchased by foreigners. If the end result will reach expectations for 35.3B, the dollar might strengthen further.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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