The Euro ended the week slightly falling, but already has changed direction and is currently rising. The news of Greek lawmakers approving the recent austerity plan on Sunday might be among the factors to help rally the Euro as traders seem confident this approved plan will suffice for Greece to receive the next rescue package. Today, BOJ will publish its monetary policy and rate decision.
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 13th:
Forex Market February Update:
The Euro to US Dollar decline by 0.66% on Friday to 1.3197; during February, the EUROS/USD rose by 0.9%. The Australian Dollar and CAD also depreciated against the USD, while the Yen slightly appreciated against the USD.
The chart below presents the development of the Euro to US Dollar during 2012.
Correlations among Exchange Rates –up to February 13th
The chart below presents the linear correlation (moving correlation) between the Canadian dollar and the Euro/USD (daily percent changes) during past several months (up to February 10th).
The chart shows the decline in the strong relation between the Euro/USD and with Canadian dollar to USD during recent weeks from a strong correlation of around -0.8 during January 2012 to nearly -0.52 in February. This might suggest the influence (if at all) of the Euro/USD on the direction of the CAD/USD has subsided.
Current Forex Indexes February 13th
Euro to US Dollar is traded at 1.3260 a 0.48% increase as of 09:27*.
GBP to USD rate is at 1.5807 a 0.32% increase as of 09:27*.
(* GMT)
Forex and Commodities News for the Day
Bank of Japan –Monetary Policy Report: The Bank of Japan will publish its rate decision and monetary policy; if there will another monetary stimulus plan, it could affect the Yen and thus might also indirectly affect the Euro;
Euro to USD Daily Outlook
The recent news of Greece’s parliament approving the new austerity plan despite the protest of the Greek people might help the Euro recover from its decline on Friday. Furthermore, the upcoming report regarding BOJ rate decision might determine the course of the Euro via the changes in the Yen (if there will be at all.
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