Today, European and American dominate economical events that could affect the forex markets. Thus major currency pairs are likely to witness significant fluctuation and investors need to keep an eye on the results in order to assume the proper position. At 13:00 PM, German IFO results are expected. IFO expectations form an early indicator for current conditions and business expectations in Germany. 7000 business leaders give their opinions about the business activity outlook and a high result shows that optimism dominates and this could affect the EUR bullishly while a result below expected reflects that investors predicted the future of the economy better than what business leaders expect and that would push the EUR downwards. At 15:00 PM, the CBI distributive sales results are expected. This is an indicator of short term trends in the distribution sector in the UK. And in addition this report helps in the formulation of the UK monetary policy. A high reading shows growth in Sales and is positive. A value of 25 is expected, this is less than previously but still a relatively high level historically and a result below that could affect the GBP bearishly and conversely. At 17:45 PM, American Markit PMI results will be released. The following indices concern the services sector and the composite index. In the US, unlike Europe the services sector controls a large part of the GDP. This indicator measures business conditions in the corresponding sector and a result below 50 reflects a downturn in the sector activity. A value of 58.0 is expected for services but a result below that even is positive could affect the USD bearishly. At 18:00 PM, the American pending home sales changes will go public thus a positive percentage show growth in these sales which could affect the whole economy positively considering the importance of the housing sector in the US. This could incline the USD significantly upwards but a result below that could imply a decline in the USD rate. At 18:30 PM, the European Central Bank will announce its covered bonds purchase program and if ECB plans to buy more bonds this would reveal dovish intentions and should hurt the USD and conversely and at the same time, the Dallas Federal Bank outlook survey concerning the manufacturing sector will go public. This index is calculated by substracting the percentage of negative outlooks from the percentage of positive opinions. Thus a result over 0 reflect that optimism dominates which could affect the USD positively and conversely.
Posted on: Mon, 27 Oct 2014 09:27:45 +0000
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