23th February to 27 February 2009 Euro / USD

Posted by admin | Posted in Weekly and Daily Wake up | Posted on 23-02-2009

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Euro currency trend
The euro is floating at the current rate of 1.2827 USD which reported a decline of 0.29% from the trading of previous week.
But during the week the currency had seen a bullish trend as compared to other currencies of the world. Euro’s currency recovery as compared to US dollar hit a 3 month low on Wednesday. The Euro currency rose significantly during the week before the final closing up mark of 1.2827 USD. The pound also saw a decline as compared to the Euro currency to a mark of 0.8858.
The major reason for Euro seeing a bullish trend was that during the week the Japanese currency Yen saw a down trend due to falling Asian markets. Also American banking was the result of falling rates of USD and rising trend of Euro.
The next week is very crucial for Euro investors since it releases the rates of flash services PMI and flash manufacturing PMI figures. Also the figures of retail sales are to be released which will impact the Euro market. So the market now depends on these figures.
But the Fibonacci series does not give bullish indication for Euro market as it is in 127 – 132 range. But Euro may lead higher and break the barrier of 132 as yen is weakening.
The main weakness of Euro’s fall is not the European regional economy but the Eastern Europe where the currencies are falling rapidly. Also one of the major concerns is that Ireland may default on sovereign debt.