FXstreet.com (Buenos Aires) - Despite a modest recovery at the beginning of the week, Euro continues to be in the eye of the storm: escalating fears about economic growth in Europe are weakening the hegemonic currency, also harmed by the uncertainty whether the ECB will or not, introduce non standard monetary policies and to what degree, or even cut rates under the 1%.
This week, a couple of key factors could affect the currency destiny, against American dollar; next Tuesday, we will have the release of Euro zone manufacturing data plus German ZEW survey, with a positive forecast for the first time in several months. However, this Wednesday the IMF will release the World Economic Outlook, and no doubts this will significantly impact the mood of investors, and so, greenback's strength. With dollar moving on risk sentiment, an optimistic outlook form IMF will lift stocks markets pure on optimism, sending dollar down against most European currencies.
Anyway, not only Euro will suffer risk events this week: the Bank of Canada will announce their latest rate decision, Australia will release its inflation data, the United Kingdom GDP results could reflect the worst economic contraction in almost 30 years, and the U.S. will have to face durable goods orders expected to tumble.
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