EUR/USD – Euro Resumes Slide, Markets Eye Fed Rate Statement

EUR/USD has posted considerable losses on Tuesday, erasing the gains which marked the Monday session. The pair is trading slightly above the 1.12 level. On the release front, Eurozone Employment Change Industrial Production. Both indicators beat their estimates. In the US, today's highlights are Core Retail Sales and Retail Sales. The estimate for both reports stands at 0.4%.
All eyes are on the Federal Reserve's policy meeting, which will conclude with a rate statement on Wednesday. The markets have written off a rate hike in June, while a July move remains unlikely, according to the CME Group. The chances of a June hike are just 1.9% compared to a 26.3% in May. The chances of a July hike is 17.9%, compared to 43.2% in May. The sharp drop in market sentiment for a rate hike can be attributed to the dismal US Nonfarm Payrolls report as well as some back pedaling by Fed over the past few weeks.

Pound Sterling US Dollar Exchange Rate Forecast GBP USD to Drop on Strong US Jobs Data

Euro Rallied Yesterday following Shock ECB Decision

The euro (currency : EUR) stole the limelight in the global currency markets yesterday afternoon, as the latest European Central Bank policy announcement saw President Mario Draghi announce a distinctly underwhelming set of monetary policy alterations. 

Hawkish Yellen Improves Fed December Rate Hike Predictions

However, thing are different, very different, on the other side of the Atlantic. Draghi’s US counterpart, Federal Reserve Chair Janet Yellen, made some eyebrow-raising comments to Congress shortly after the Italian moneyman had left the stage. 

Will the euro sustain yesterday’s good graces

The euro had a good start to the day against sterling and the US dollar on Monday, as overall sentiment for a US rate hike in the upcoming months became more unlikely. It was a very quiet day for the single currency on the data front. Italian business confidence data was released, coming out much better than expected, at 104.2 in comparison to the forecasted figure of 102.7. The euro finally breached the key resistance level against sterling of 1.35, a key level it hadn’t broken since May this year.

Today is an important day for the single currency, with Business and Consumer confidence data due from the Eurozone. Given the strength of today’s Italian figure, it is hoped that the Eurozone data will also be improved; whether the former was sufficient to affect the latter remains to be seen. Germany also releases its preliminary Consumer Price Index (CPI) data; an indicator of inflation, it is forecast to fall to a negative figure of -0.1%, down from 0%. Falling below the zero percent line is a physiological level and is likely to unsettle the single currency yet again.

If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Source:smartcurrencyexchange.com

Euro continues along the same trajectory

The euro managed to hold its own on Wednesday, with most of the news in the arena coming from elsewhere. Against its two major currency pairs, the single currency remained around the same level as Tuesday. Against sterling it strengthened due to poor manufacturing data from the UK but these gains were eradicated in the afternoon; compared to the US dollar it weakened slightly in the morning, amid fresh hopes for easing measures by the Bank of China were looking more likely.

With the week remaining muted for the euro, this morning we had very weak industrial production from France – showing a 0.8% drop, when 0.3% growth had been anticipated.

Revised Eurozone growth figures do little to help boost the euro

Yesterday was another muted day for the euro as the only significant data releases consisted of revised growth figures for the Eurozone, which came out at 0.4%, slightly better than the forecasted 0.3%, and the trade balance data for Germany which came out close to expectations and again highlighted the power of the German economy to generate exports. Against sterling, the euro briefly weakened to its worst level in three-weeks but did regain some ground in the afternoon. The euro was largely unchanged for the second day in a row against the US dollar, with the US markets opening again yesterday after Labour Day.

It would appear that the quiet week will continue for the single currency as there is no news out on Wednesday. This means that the euro is more susceptible than usual to events elsewhere.

If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Slight weakening against sterling the big news for the euro

Monday was an uneventful day for the euro, with the single currency weakening slightly against sterling and staying almost unchanged against the US dollar. The only major piece of data was German industrial production data; released early in the morning, this came out worse than expected at 0.7% (compared to the forecast 1%). This pushed the bar forward for the euro to slowly weaken against sterling as the day went on – although other than this, it was an extremely quiet day.

Greece local newspaper: financial activity in the country grinds to a halt, stocks market and banking too

Emergency condition is happening in Greek, It looks like Greece's stock market is going to be closed for a week. as reported by Greek local newspaper Kathimerini in English version the Athens Stock Exchange is going to be closed for a week. 

Greek local newspaper Kathimerini reports that, "The Capital Market Commission is expected to announce in the early hours of Monday the closure of the Greek stock exchange for at least a week, as financial activity in the country grinds to a halt."

Many Greek local Banks were already to be closed for a week. As a result, Greek local newspaper Kathimerini reports, the closure of banks will limit the ability to process transactions on exchanges, and so it is unlikely that stock markets will re-open until the banks do. Greek stock market remain lower

As reported before on Sunday night, Greece has sought a short bailout extension, as the country's current program is set to expire on Tuesday while Greece has called for a referendum on the matter for July 5.

EURO: THE ENDLESS PIT IN 2010

The euro has just touched a new record low for 2010 versus the greenback and the yen on speculations that Greece will suffer its first credit downgrade this year, which would follow the two previously suffered last year as the southern European nation started to agonize with its growing budget deficits.

EURO RECEIVES AID FROM IMPROVED MORALE

Euro is getting a little help today, thanks to improved morale in the eurozone. Even though the 17-nation currency is struggling against the US dollar, the euro is higher against some of its other major counterparts. There is a lot for Forex traders to think about as this week draws to a close.

Top Trade Idea for September 6th, 2013 – EUR/USD

The EUR/USD daily chart shows a clear downtrend. There’s potential for a strong read on non-farm payrolls tonight to drive further USD strength, and another leg down for EUR/USD. Leaning on the daily trend, traders may turn to the hourly chart for an entry signal.