With a light news day expected, most traders will be anticipating two events as the day progresses. The first is whether or not the rumors of an EU/IMF bailout for Ireland will be proposed in the Irish parliament by her finance minister this afternoon. The second is Jean-Claude Trichet’s speech at the European Central Bank’s Annual Report in Strasbourg.
Optimism has been growing across Europe as investors anticipate the implementation of a bailout for Ireland, which should help shore up concerns about further debt contagion spreading to Portugal and Spain.
Here is a roundup of today’s events:
15:00 GMT: EUR – Consumer Confidence
As a leading indicator of consumer spending, the regional confidence report helps many traders gauge the sentiment in the euro zone. However, since this report is presented in two parts it tends to not have much of an impact on trading, but combined with other data helps fill in a number of gaps in the broader economic picture. If the figure comes out higher than expected, we could see a mild upturn in the EUR.
16:00 GMT: EUR – ECB President Trichet Speaks
European Central Bank (ECB) President, Jean-Claude Trichet, is due to speak at the ECB Annual Report in Strasbourg. While the impact of such statements is often not forecast, there is always the possibility that Trichet will comment on a number of developments in the region and hint at future policies. Speculators will attempt to use those statements as a gauge of direction for the EUR in the coming weeks and adjust their positions accordingly. Therefore, this speech will likely create volatility as it gets underway.
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Anton Eljwizat is a Currency Analyst with ForexYard. His experience in writing technical analyses for trading companies such as ForexYard has helped Anton stand out among other analysts. His understanding of technical indicators and chart analysis helps him provide some of the most groundbreaking analysis in the market today. His writings have been published on the ForexYard Trading Blog and affiliate websites. Anton holds a degree in Business Management from Ryerson University as well as a degree in Finance from Centennial College in Canada.
