Mon, 02 Aug 2010 00:00:00 +0200

Euro Looks to Prolong Gains against the Dollar

As markets opened for the week, the EUR shot up against the safe haven Dollar and Yen, while taking steep losses against the Aussie. EUR/USD and EUR/JPY are up 30 and 40 pips respectively since markets opened. EUR/AUD on the other hand, is down about 50 pips in the same amount of time. Analysts are quick to point out that the EUR gains have more to do with the troubles in the U.S. economy, and less to do with any positive European economic indicators. What this means for traders, is that any gains the EUR has made on the Dollar or Yen are tentative at best. With a busy trading week just getting started, any economic indicator that could come in above or below expectations could cause volatility for the EUR. Today, EUR traders will want to pay attention to the manufacturing PMI's from both the U.K. and U.S. Both PMI's are forecasted to show expansion in their respective manufacturing industries. If the reports come in as predicted, the EUR may be able to extend its recent gains as investor confidence is likely to be boosted. At the same time, an unexpected drop in either PMI figure could lead to a wave of risk aversion, and may boost the Dollar.

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard