Euro/USD Daily Outlook –February 23

The Euro/USD didn’t do much yesterday as it has slightly rose, while many other currencies such as Canadian dollar and Yen depreciated against the US dollar. Today, U.S. unemployment claims weekly update will come out.        

Here is a short outlook for the Euro /USD including the main news items and events that may affect this exchange rate for February 23rd:

Forex Market February Update:

The Euro to US Dollar slightly increased by 0.11% on Wednesday to 1.3249; during February, the EUROS/USD increased by 1.27%. Alternatively, the Canadian Dollar and Aussie dollar depreciated against the USD. The Yen also depreciated against the US Dollar.

The chart below shows the development of the Euro to US Dollar during February (UTD).

Chart Euro to us dollar Exchange Rates  23 FebruaryCorrelations among Exchange Rates –February 23rd

The chart herein presents the development of the linear correlation (moving correlation) between the Canadian dollar and the Euro/U.S dollar (daily percent changes) during the last four months (up to February 21st).

The chart shows a drop in the once strong relation between the two exchange rates. This relation has loosened in recent weeks; currently the linear correlation between the two daily percent changes of these currencies is nearly -0.56 for February. This might suggest the influence (if at all) of the Euro/USD on the direction of the USD/CAD is weaker than a few weeks earlier.

Correlations Euro to us dollar and CAD USD  2011-2012 February 23

Current Forex Indexes February 23rd

Euro to US Dollar is traded at 1.3292 a 0.32% increase as of 12:35*.

GBP to USD rate is at 1.5715 a 0.30% increase as of 12:35*.

(* GMT)

Forex Related News for the Day

G20 Meeting;

U.S. Jobless Claims: initial claims fell by 13,000 to 348,000 claims for the week ending on February 11th; the number of insured unemployment also fell by 100,000 to 3,426 thousand during the week of February 4th; the upcoming weekly update might affect strength of the US dollar;

Euro to USD Daily Outlook

I speculate the Euro will continue to dwindle with no clear path. After the EU ministers of finance had approved the €130 billion bailout package for Greece at the beginning of the week, the Euro/USD will probably trade with little movement for the rest of the week. The upcoming report from the U.S. might move a bit the Euro/USD if this update will present sharp changes.  

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