A very crucial week is coming up for the major economies where their currency pairs would certainly face some serious volatility this week as a number of critical economic indicators are due to be released. The euro which is currently taking bearish correction and is in short term bearish channel would be impacted highly by the data including German ZEW Economic sentiment, the German and French flash manufacturing and services PMIT, the Spanish unemployment rate, and the German PPI. A good positive outcome for these indicators can surely lift the pair up where bullish streak might continue as it was in the month of November and December.
Now that the bulls have taken the pair back up immediately after the bearish correction, the investors are eying the data that is to be released this week including claimant count change, asset purchase facility, and unemployment rate which is expected to drop down to 7.3% from its previous reading of 7.4%.
Apart from that the economic indicators of the U.S. including unemployment claims and existing home sales can impact the pairs as well, but both these indicators are due on Thursday.
Losing more than 250 points last week, the Aussie investors are still cautious and are looking ahead to the Chinese economic indicators including GDP, fixed asset investment, industrial production, and the inflationary numbers of Australian economy where CPI rate is expected to fall to 0.5% from its past reading of 1.2%. Aussie desperately needs to have some good fundamental outcomes, or else the bears would be taking this rally further down as the charm for the pair wouldn’t be that much for the investors.
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