日本語
Español
中文
Русский
- New York 23:34
- London 04:34
- Barcelona 05:34
- Tokyo 13:34
- Sydney 15:34
0
0
Germany: The EUR/USD situation after IFO
Wed, May 21 2008, 09:56 GMT
by Adam Narczewski
The Eurodollar reacted very strong to the Ifo Institute Index, which increased to 103.5 points in May from 102.4 points in April (which by the way was the lowest reading since January of 2006 when it was at 101.9). The reading is much better than expectations since analysts forecasted a drop to 102 points.
The EURUSD reacted immediately with a strong increase from 1.5642 all the way to 1.5735. The importance of the Ifo report is that it confirms the increasing trend of the euro, seen for the last couple of days. Mostly, it confirms the inflationary worries of investors from yesterday, where PPI inflation in Germany was much higher than forecasted and the ZEW’s Institute President forecasted a soon hike of interest rates in the Euro zone by the European Central Bank.
Eyes of investors will also be focused today on the FOMC minutes that will be published tonight. The minutes publication can decide on the EURUSD direction today and probably tomorrow. It is possible that it will make investors to look at the European economy from a different perspective and at the same time open the way for the Eurodollar for new record highs.
Published on Wed, May 21 2008, 09:57 GMT
X-Trade Brokers Dom Maklerski SA
| Robert.kosowski@xtb.pl; 00-876 Warszawa
http://www.xtb.com/ | Robert.kosowski@xtb.pl
Legal disclaimer and risk disclosure
X-Trade Brokers Dom Maklerski S.A. does not take responsibility for investment decisions made under the influence of the information published on this website. None of the published information can be treated as a recommendation, disposition, promise, or guarantee that the investor will achieve a profit or will minimize risk using the information published on this website. Transactions including investment instruments, especially derivatives using leverage, are in its nature speculative and can provide both profits and losses that can exceed the initial deposit engaged by the investor.Interested in forex trading? forex brokerage firms!
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial 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 and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.