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Slumdog Forex - Daily Forex Analysis

EUR/USD Could Remain Engulfed - Septmber 28,2012


EUR/USD finally closed just above its opening price of yesterday, in Greece there is growing speculation that the IMF, the EU and the ECB take the brunt of the concessions in the aid package of the country.
Risk events continues to be a major cause of the financial markets, however, reiterate that today and the future events are important, but are more used to create noise, while the week coming ECB (4 October) and non-farm payroll (October 5) release is major drivers.

Event risk continues to be an important driver of financial markets; however we re-iterate that today and tomorrow's events are important but serve more to create noise; whereas next week's ECB (October 4th) and non-farm payrolls release (October 5) will prove more important drivers.
Market dreary mood was seen ahead of the Spain's budget announcement, roomates could help pave the way for a bailout request and could implement more austerity measures amid mounting apprehensions in the country. Also, series of downbeat growth numbers out of the major economies of the world is also baffling investor sentiments. With the sluggish U.S. economy and the Fed's recent sounding pessimistic over economic activities, the annualized growth figures today could signify the current state of the economy. Also, shoring up the sentiments over the weekend ahead of a weeklong Chinese holiday, would be the manufacturing figures from largest metal consumer, derailing amid China growth story in the nation. In the wake of modest economic data, it remains to be seen if the Chinese central bank do any surprise sprung by boosting liquidity in coming days. On the whole, week's moves could remain engulfed to cues out of the U.S. and Europe.













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