While the markets have already experienced a certain level of volatility this morning, the news set to be released this afternoon promises to shake things up to a considerably higher level. The EUR/USD pair is already up around 80 pips from this morning, while the GBP/USD pair had shot up some 75 pips before dropping back to this morning’s levels. At the moment the pairs are trading at 1.3186 and 1.5617, respectively.
Investors are eagerly anticipating today’s US Unemployment Claims and Pending Home Sales figures. While analysts are predicting a slight increase in the number of people filing for first time unemployment insurance in the past week, the number of pending home sales is predicted to rise. The seemingly contradictory pieces of economic news have left traders puzzled as to where the USD is heading for the rest of the day. High unemployment is likely to cause risk aversion, which would be good news for the safe haven dollar. On the other hand, a positive home sales figure could cause investors to turn to more volatile currencies like the euro.
In addition, traders will want to pay attention to the ECB Press Conference, scheduled for 13:30 GMT. Given the erratic movement seen by the euro as of late, investors will be eagerly awaiting any news on how the ECB plans on stabilizing the currency.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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