Coming Up Today (all times GMT)
- EUR German Prelim GDP q/q (06:00)
- GBP Claimant Count Change (08:30)
- GBP BOE Gov King Speaks (09:30)
- GBP BOE Inflation Report (09:30)
- CAD Trade Balance (12:30)
- USD Trade Balance (12:30)
The Euro still looks bearish as the investors still worry about the euro zone's ability to tackle the Fiscal deficit in Greece. Even after the rescue package there are worries that he debt crises might be contagious and spread in Europe. The U.S. Stock market did show some stability as the major indexes rebounded from the big drop last week.
The Euro dipped about 0.2% and traded around $1.2642 during the late U.S session yesterday. The market will watch how much the Euro zone and the IMF are committed to solve the debt problems and if these authorities will be able to increase taxes and cut spending. Euro continues in the downward direction testing the support levels at 1.2600. The imminent resistance can be seen at 1.2660 levels
After Gordon Brown's resignation, the Conservative party's Davis Cameron took over as the New Prime Minister. The Industrial and manufacturing production came out to be better than expected at 2.0% m/m and 2.3% m/m, respectively yesterday and the housing market also showed signs of recovery. The Bank of England's quarterly Inflation report might not contain any surprises today either. The GBP might test the $1.4964 levels today if all positive news comes out of The U.K
The gold continues to trade bullish with next targets set at 1300 levels. Gold is still proving to be the safe haven for the investors as it trades at the all time high yesterday. The uncertainty in Euro is one of the main causes of the Gold flight. According to Barclays the gold can move as high as $1500.