By Greg Holden – The EUR/USD appears to be recovering mildly after yesterday’s sharp plummet. Fitch Ratings agency downgraded Ireland’s sovereign debt, pushing the euro to recent lows. The pair fell as low as 1.3163 yesterday before recovering back to the 1.3250 price level. If today’s trade balance and consumer sentiment reports from the US and Canada come in as positive as expected, the US dollar could continue its bullishness against the EUR.
Here is a roundup of today’s leading events:
13:30 GMT: USD & CAD – Trade Balance
The American and Canadian trade balance figures are set to be published today at 13:30 GMT and the news could help both currencies extend recent bullish gains made against their European counterparts if the reports come as expected. The trade balance measures the difference between imports and exports of a country and reflects levels of demand for the nation’s goods.
14:55 GMT: USD – UoM Consumer Sentiment
The University of Michigan (UoM) Consumer Sentiment report is a leading indicator of consumer sentiment and consumer spending. It surveys approximately 500 consumers regarding spending, outlook, and optimism regarding the future. If the report comes as expected, or higher, the USD could see some added bullishness before markets close for the weekend.