With US markets absent from yesterday’s trading due to Martin Luther King Jr. Day, the USD experienced mixed results against its currency rivals. The EUR appears to have continued paring last week’s gains while the British pound looks stronger from this morning’s consumer confidence and housing reports.
The greenback should figure into today’s trading, but most significant economic indicators will once more be emerging from the euro zone and Britain.
Here is a roundup of today’s leading events:
The Consumer Price Index (CPI) and Retail Price Index (RPI) are both inflationary gauges for the British economy. These reports together comprise the Bank of England’s (BOE) primary method of evaluating inflation targets for the purpose of adjusting monetary policies. With the relatively stagnant economy over the last few years, an indication of significant growth in inflation could help boost the GBP in this week’s trading.
10:00 GMT: EUR – German and Euro Zone ZEW Economic Sentiment
The ZEW reports gauge levels of business sentiment towards the present state of the economy. It is a diffusion index based on surveys of institutional investors and analysts who are asked to rate the 6-month economic outlook. It is a leading indicator which helps forecast the state of the economy in the coming months. Both of these reports are expected to reveal an increase in economic sentiment in both Germany and the broader euro zone. If the results come in line with, or above, forecasts then the EUR could see modest strength being added in this week’s trading.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
