By Forex Signs, Inc. – After a volatile session of uptrend last Friday, which resulted from the positive development regarding the rescue of the Ireland’s banks that will likely prevent contagion across the region’s debt markets, the Euro is now anticipated to go back from consolidation pattern.
In Europe, traders now expect the important public engagement of ECB President Jean-Claude Trichet at the European Parliament’s debate, in Strasbourg. This much awaited speech is viewed to shed some light on the debt crisis and the economic situation that could trigger interesting statements by which will rock the Euro, drive key interest rates decision and influence future monetary policy to adjust.
On the other hand, the announcement of the European Union finance ministers regarding the deal that will create a capital fund for Ireland’s banks and may restructure the financial industry had considered to be so influential, causing the risk sentiments in the EU region to weaken. This incident had also in return made the higher-yielding assets, specifically the Kiwi and Aussie, to appreciate as it shows that sovereign issue in the euro zone isn’t going to go away in a hurry.
So far, investors are observed to become more nervous and worried about what’s going on in the EU regions, and what will happen to the sovereign debt crisis is still seen to be the key driver of this growing anxiety.
Europen Session Outlook
The Euro had a fairly good performance on its last session, as prices closed higher against most major currencies due to the better than expected economic figures. Although Current Account fell to -13.1B and French Preliminary NFP rose only by 0.3%, the overall sentiment was positive most notably the ZEW Economic Sentiment as it posted a high 13.8 points, which was above analysts’ expectations.
For the upcoming session, the Euro to be volatile as ECB President Jean-Claude Trichet is scheduled for a speech at the European Parliament. He might discuss the current economic situation of the European Union; especially that Ireland has sought 95B Euros in international aid to rescue its troubled banking sector. Expect high volatility when parliament members throw their questions and it would be interesting to hear their statements after Trichet’s speech.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
