By Dan Eduard
Following the steep bearish correction seen by the US dollar last week, investors will be keeping a close watch on a wide ranging batch of fundamental news scheduled to be released in the next few days.
ForexYard traders will want to pay attention to the following news events, as they will likely dictate the direction the major currency pairs take for the rest of the week.
On Tuesday, the most significant piece of news will likely be the German ZEW Economic Sentiment, scheduled to be released at 10:00 GMT. The report is a survey of leading German investors and analysts, who are asked to rate the economic outlook in Germany for the next 6-months. The survey typically generates significant amounts of volatility, and should be taken seriously. Current predictions are calling for a substantial increase in the figure from last month. If true, the euro will likely see significant gains throughout the day on Tuesday.
The leading indicator on Wednesday is likely to be the Bank of Canada’s Monetary Policy Report and Press Conference, scheduled to take place at 15:30 and 16:15 GMT, respectively. The report and press conference both provide valuable insight into the current state of the Canadian economy, and the news promises to generate volatility among CAD pairs. Positive news will likely boost the loonie against the safe haven USD and JPY.
Thursday will likely be volatile for USD pairs, as this week’s US Unemployment Claims figure is set to be released at 13:30 GMT. The last few weeks have seen several disappointing employment statistics come out of the US. At the moment, analysts are predicting a sharp drop in the number of new people seeking unemployment benefits. If true, the greenback will likely see a boost. At the same time, employment figures have continuously defied analyst expectations. Traders will have to wait and see if that will be the case on Thursday.
Finally, on Friday traders should pay attention to the UK Retail Sales figure, set to be released at 09:30 GMT. Last month’s figure came in below expectations, and led to a steep drop in the value of sterling. This month, analysts are predicting an even bigger drop. If the forecasts turn out to be true, the pound is likely to see a bearish close to the week.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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