By TraderVox.com
One of the most difficult things to do in trading is adapting your positions on the opening of the US markets. The difference in events between the US and European markets always make way for a change in market sentiment once the US session overlaps the European session and even worst once the European session closes to leave the US session flying solo.
Yesterday was no different, The Euro staged a remarkable comeback yesterday and unsurprisingly this is not the first time we have seen a currency do that in recent days.EUR/USD fell yesterday consistently to a daily low of 1.3028 after having opened the day at 1.3120.But we saw an incredible rally during the US session and the EUR/USD eventually closed the day at 1.3131, an immense 11-pip gain given the circumstances.
The Greek government is still stalling with creditors and private investors over a debt deal and this had a huge play in the valuation of the euro yesterday. However the currency is still close to its highs and the implications are that investors likely have high hopes to see a last minute deal go through. Also reports yesterday coming from the euro zone were definitely better than expected and we are sure this had a huge part to play in the euro’s comeback.
The Sentix Investor confidence index for the month of February was released yesterday. We saw a figure of -11.1, which is certainly better than the expected figure of -14.8 analysts were expecting. Germany’s factory orders for December also went beyond expectations and recorded an increase in 1.7% a figure remarkably higher than the 0.7% increase expected.
For today we have a report on German Industrial production coming out of the euro zone. This is due at 11.00 am GMT. Analysts think the German industrial sector contracted by about 0.1% in December and any figure better than the expected figure will surely be able to keep the euro afloat for the meantime.
Also keep tabs on Greece because several analysts expect a deal will be announced soon. How many times have we said that in the past weeks?
Article provided by TraderVox.com
