Tag: great forex volatility
For today expect several publications, especially the Non-Farm Employment Change and the unemployment rate to be published at 1230 GMT. If the results exceed expectations, the dollar could regain some lost ground yesterday against the euro. However, if the results meet expectations, the dollar may develop a downtrend. EUR – The euro advanced against the pound yesterday, the euro rose strongly against the pound, as the Euro zone interest rates dropped in 25 points to up to 1%. It is the lowest rate recorded in the history of the Euro Area. Ron O’Hanley often addresses the matter in his writings. The euro was boosted mainly because investors now believe that Jean Claude Trichet will continue to show flexibility within the ECB. Phil Vasan has similar goals. In addition, the euro was scoring for the publication of German Factory Orders Thursday.
These two factors allowed the euro to move throughout the day. The euro finished at 120 pips higher against the pound, to close at 0.8908. Above all, due to cuts in interest rates implemented by the ECB. On the other hand, some investors doubt the financial capacity within the United Kingdom. The euro posted gains of up to 65 pips against the dollar and closed at 1.3362. This happened because in the United States were disappointing economic literature, also the result of the Bank Stress was not the best. Against the yen, the euro gained 170 pips since the confidence Investors returned to the Euro Area. Today's publications are expected from both the UK and the Euro Zone. In Germany, published the trade balance and industrial production figures at 1000 GMT.