On Tuesday, the EUR tumbled to a near 2-and-half-week low against the Dollar. This came about even though the EUR experienced a day of positive data publications. The bearish EUR occurred as demand for riskier assets dropped. This was initiated by U.S. Consumer Confidence falling significantly yesterday. On the other hand, the British Pound actually rose vs. its key currency pairs, as the Bank of England (BoE) revealed to economists that it doesn't intend to lower the rates on the reserves of banks.
The EUR fell by about 70 pips vs. the USD on Tuesday to the 1.4592 level. The GBP/USD cross finished trading notably higher at 1.5969. The news in Britain helped the EUR/GBP fall for a second day in a row to the 0.9132 level. The news in Britain also led support to the GBP in regards to the GBP/JPY cross, as the pair rose by over 100 pips to the 144.40 level. It seems that on all fronts that the cable was unaffected by the pessimistic news in the U.S. With regards to the European currency, many traders were surprised by the pace of its decline in yesterday's trading.
Today's trading offers promising opportunities for forex traders. There is much data that is expected to be released from Britain, the Euro-Zone and Switzerland. The German Unemployment Change figures are expected to be published at 07:55 GMT and the CPI Flash Estimate at 09:00 GMT. From Britain, the Index of Services results are set to be released at 08:30 GMT. The KOF Economic Barometer is scheduled to be released from Switzerland at 09:30 GMT.