The main event that dominates the market at the moment is reports regarding the European sovereign debt concerns. There appears to be concrete concerns that Ireland will have real difficulties paying off its debts. There are more and more worries that the Irish government will need to seek euro zone aid to bail out its banks.
Finance ministers from Germany, France and the U.K. met today to discuss Ireland’s debt crisis. They are expected to issue a joint statement later today – and this statement is likely to instantly impact the market, especially on euro pairs.
This, of course, has weakened the euro and thereby strengthened the U.S. dollar. One of the side effects of the dollar’s strengthening is a wavering fluctuation in commodity prices. Both crude oil and gold saw sharp drops yesterday amid their solid uptrends. Gold fell below $1,386 an ounce and crude oil fell to $86.25 a barrel from a daily high of $88.60.
Further reports regarding European debts have potential to extend these trends.
Here are today’s leading news events:
• 07:00 GMT: EUR – German Preliminary Gross Domestic Product (GDP) – GDP measures the change in value of all goods and services produced by an economy. Positive result from the euro zone’s largest economy is likely to support the euro.
• 14:55 GMT: USD – U.S. Preliminary Consumer sentiment – This is a survey of about 500 consumers who are asked to rate their current and future economic conditions. Analysts forecast that the results will rise to 69.1. If the end result will be higher, the dollar is likely to see further bullishness.
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Yan Petters is a top analyst of market trends who specializes in the forex market. Yan has a reputation for composing highly accurate analytical reports, both technical and fundamental. Yan Petters' ground-breaking perspectives on currency trends are highly valued by his colleagues and clients and has been a featured author on a number of influential trading sites. Yan Petters is an author for the ForexYard blog
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