EUR/USD closed on a good note last Friday, thanks to more reports indicating that the ECB is considering flexible yield targets for shorter-maturity bonds. This pair also received a lot of support from comments by Chinese Premier Wen Jiabao who said that the Chinese government is willing to put money in Europe’s bond market.
Economic data from the region were also positive. The euro zone CPI flash estimate came in at 2.6%, slightly higher than the 2.5% forecast and the previous month’s 2.4%. Meanwhile, the euro zone unemployment rate was at 11.3%, just as expected.
This week will be a big one for the euro as an overabundance of economic events is scheduled to happen. Here’s a list of them with the most important ones in bold.
Monday: Spanish Manufacturing PMI (7:15 am GMT), Italian Manufacturing PMI (7:45 am GMT), and euro zone Manufacturing PMI (8:00 am GMT)
Tuesday: Spanish Unemployment Change (7:00 am GMT)
Wednesday: Euro zone Retail Sales (9:00 am GMT)
Thursday: ECB Interest Rate Decision (11:45 am GMT)
Friday: German Industrial Production (10:00 am GMT)
In addition to these events, also watch out for the U.S. non-farm payrolls. Even though it’s a U.S. report, it’s a major market mover that has a strong impact on most currencies.
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