The most significant piece of fundamental news on the economic calendar for the euro to dollar pair actually came yesterday with a speech by ECB President Jean Claude Trichet who signalled to the market, in no uncertain terms, that in his view the US Dollar should remain the world’s leading reserve currency and stated that “on this issue, I am very clear. I have just one message ……It is extremely important that the United States of America…….has been ……saying that a strong Dollar is in the interests of the United States. I consider that extremely important and I welcome this declaration.” In effect buy the US Dollar and sell the Euro which is what has been happening this morning in early trading.
The fundamental news today is very thin with a minor item in Europe, namely the Sentix Investor Confidence Report which came in far worse than expected (proving my point) at -31.3 as opposed to a forecast of -23.7, which in turn helped to add to the negative Euro sentiment. This afternoon we have the ISM Non Manufacturing PMI Data which is yet another diffusion index, this time based on a survey or purchasing managers, but excludes the manufacturing sector. It is generally considered a leading indicator and any number above 50 indicates a market in expansion and below in contraction, with this afternoon’s forecast being 45.9, a slight rise from the last time around at 44. The fundamental landscape for the remainder of the week will be the backdrop of the G8 meeting which starts on Wednesday in Italy, in L’Aquila (assuming there are no earthquakes).
You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links. I have also included details on an excellent ECN broker.
Leave a Reply