The Euro only slightly rose yesterday, despite the announcement of the ECB to keep rate unchanged and Greece’s approval of the austerity plan needed to receive the recent rescue funds. There are many financial news on today’s agenda including American trade balance report, U.S Federal budget development, and Bernanke’s speech in Florida. Update the Euro is declinging after the EU leaders didn’t approve the rescue package for Greece.
Here is a short outlook for the Euro /USD exchange rate including the main news items and events that may affect forex trading for February 10th:
Forex Market February Update:
The Euro to US Dollar slightly rose by 0.19% yesterday to 1.3285; during February, the EUROS/USD rose by 1.5%. The Australian Dollar and Yen depreciated against the USD, while the CAD also slightly appreciated against the USD.
The chart below shows the development of the Euro to US Dollar during January and February
Correlations among Exchange Rates –up to February 10th
The chart below shows the linear correlation (moving correlation) between the Aussie dollar and the Euro/USD (daily percent changes) during past several months (up to February 9th).
The chart shows the strongest relation between the Euro/USD and with Australian dollar to USD has declined in the past several weeks from a high of over 0.9 during October 2011 to nearly 0.47 during February. This might suggest a the influence of the Euro/USD on the direction of the AUD/USD has subsided.
Current Forex Indexes February 10th
Euro to US Dollar is traded at 1.3263 a 0.1690% decrease as of 08:23*.
GBP to USD rate is at 1.5802 a 0.1029% decrease as of 08:23*.
Forex and Commodities News for the Day
Bernanke Speech: following Bernanke’s testimony earlier the week, he is also set to give a speech in Orlando, Florida regarding housing market;
Great Britain PPI Input: this report will present the yearly rate of GB’s producer price index for January 2011; it may affect British Pound;
Canada’s Trade Balance: In the last report for November 2011 the trade balance rose from $487 million deficit to a surplus of $1.1 billion in November; this report might affect the course of the CAD;
American Trade Balance: This monthly report for December will present the changes in imports and exports of goods and services to and from the U.S, including commodities such as crude oil; for the previous report, the services surplus rose to $15.4 billion; as a result, the goods and services deficit increased during the month to $47.8 billion.
U.S. Federal Budget Balance: this publication will present the changes in U.S federal balance for January; this report indicates the government debt expansion and thus may affect the USD.
Euro to USD Daily Outlook
The developments in Europe regarding the austerity plan of Greece and its rescue plan may influence Euro traders today. Furthermore, the upcoming reports to be published today regarding the American, Canadian and British economies might also determine the course of the Euro if there will be sharp turns or surprises. Otherwise I suspect the Euro/USD will continue to dwindle.
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