Forex News Analysis:  euro to Dollar

Tuesday was another quiet day for fundamental news on the economic calendar for the euro to dollar pair, with very little news in either the US or Europe, which is in stark contrast to Wednesday’s economic calendar which is packed, and with the star item being the US rate decision and statement following the 2 day FOMC meeting. The fundamental news day starts early tomorrow for the euro to dollar, with a string of news items in Europe starting with French Consumer Spending, followed by Flash Manufacturing and Services data for France, Germany and Europe as a whole, with all the numbers expected to show an improvement over last time. Of particular interest will be the Manufacturing and Services numbers which are all now approaching the magic ’50’ which is the tipping point for all these diffusion indices, with this figure indicating a market moving from contraction into expansion, and no doubt any ‘good news’ stories will be pounced on by the media and politicians. The Manufacturing and Services figures are based on a survey of purchasing manager, and are generally considered to be leading indicators of the economy with the French forecast at 51.4 and 50.1, against a previous of 50.8 and 49.3 respectively. The German figures are expected to be broadly similar at 50.9 and 54.0 against previous figures of 49.2 and 53.8 – so once again moving gradually above the magical 50 level once again. Finally the European figures are forecast at 49.8 and 50.5, against a previous of 48.2 and 49.9. It is important to remember that these numbers are released two minutes early to Thomson Reuters subscribers, so the news is already in the market by the time it is available to the retail trader, and therefore any market reaction may have already taken place. The above tranche of data is followed shortly after by the Industrial New Orders numbers which are forecast at 2.1% against a previous of 3.1%, so perhaps not such good news here. Again this is considered to be a leading indicator of production, with rising purchase orders signalling that manufacturers will increase activity as they work to fill the orders.

The focus for the euro to dollar pair then switches to the US as the markets await the FOMC statement and rate decision later in the afternoon, with crude oil inventories and a speech by Treasury Secretary Geithner the only other items of news on the economic calendar for the euro to dollar pair.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts for the euro to dollar, or technical analysis for the euro vs dollar by simply following the links.  I have also included details on an excellent ECN broker.