6th July to 10th July 2009 Euro / USD
Posted by admin | Posted in Weekly and Daily Wake up | Posted on 06-07-2009
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This week euro saw a setback when it slipped beyond 1.4000 mark. Currently the currency is trading at the rate of 1.3985. It slipped 0.55% from the previous week and 1.76% from the last week’s trading. The fundamental trend of the currency was bearish and it is expected to be the same for the coming week. There is no sign of recovery seen for the currency.
This week was expected of a great change in terms of rate of interest in the euro zone but all in a fray. The volatility sessions were expected to be high because of the European Central Bank (ECB) had to take the decision regarding the interest rate and US non farms payroll report had to be announced. But there was no change in the interest rates which left the traders in awe and the last few days of the week didn’t seem to excite the traders to invest in the market.
And such bearish trend is expected to be the same in the next week since no major events are in the view and traders are not showing their confidence in the currency. There is no expectation that the euro zone will make a prospective place in financial markets since its correlation is with assets which are highly risky. Also there is not any noteworthy improvement in the trade of gold or oil either. They are also giving a hard time to the trader. So such a trend will not bring any positive news for EURUSD trading in the euro zone.
Also the unemployment rate has touched a new high which will affect the trading in the euro zone. But German sales report can bring a sign of relief to the traders since it is positive in nature which implies that there is an increase in local level of consumption in the German economy. The economy has improved by 0.4%. Also the euro zone PMI figures improved from 42.4 to 42.6.
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