By Dan Eduard – Last week began with positive releases from the U.S. economy. The data had created speculation that the U.S. economic recovery is advancing, and that global recovery will follow as well. As a result the U.S. dollar fell on all fronts. However, two disappointing publications from the U.S. on Thursday were enough to reverse the trend, boosting the dollar and yen as a result. It seems that fears of a potential slow down in the global economic recovery are currently driving the market from riskier assets like the euro and U.K. pound.
This trend is likely to continue for the foreseeable future, and considering the heavy news week ahead, traders should be able to generate several profitable positions.
Here are today’s leading economic publications:
• 07:30 GMT, German Flash Manufacturing PMIServices PMI – This is a purchasing managers’ index (PMI), which attempts to reveal the current market conditions in Germany. Analysts’ expectations for both indicators are just a little above average. If the end results will beat expectations, the euro might be supported as a result.
• 08:00 GMT, Euro-Zone Flash Manufacturing PMIService PMI – These PMI’s are for the entire euro-zone, not just Germany. These releases tend to have a smaller market impact, however an unusual result could create volatility. If the end result will beat expectations, the euro may rise as a result.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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