Source: ForexYard
The EUR/USD bounced back from a three-week low during the overnight session yesterday, reaching as high as 1.2523 before staging another downward correction. The pair is once again trading below the 1.2500 level. Traders can expect significant market volatility today, as a much anticipated EU summit is scheduled to begin.
Main News for Today
EU Summit- Scheduled for today and tomorrow
• Investors will be closely watching the summit to see if any new plans to stimulate euro-zone growth will be unveiled
• The overall feeling among analysts is that EU leaders will likely fail to unveil any new significant measures at the summit
• Should the EU summit disappoint, riskier currencies and commodities, like the euro, AUD and crude oil, could take heavy losses to finish out the week
Italian 10-y Bond Auction
• Investors will be watching the bond auction to see how hard the Italian economy has been hit by the euro-zone debt crisis
• Should demand for Italian bonds turn out to be poor, the euro could see heavy losses throughout the day
US Unemployment Claims-12:30 GMT
• The number of Americans filing for first time unemployment insurance has gone up over the last 2 weeks
• Should today’s news come in above the expected 385K, the dollar could take losses against the Japanese yen
Read more forex news on our forex blog
Forex Market Analysis provided by ForexYard.
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