- GDP (QoQ) (CH, 6:45 GMT)
- German Retail Sales (MoM) (GER, 07:00 GMT)
- Nationwide HPI (MoM) (GB, 07:00 GMT)
- French Consumer Spending (MoM) (FRA, 07:45 GMT)
- ECB President Draghi Speaks (EUR, 08:00 GMT)
- German Unemployment Rate (GER, 08:55)
- CPI (YoY) (EUR, 10:00 GMT)
- ADP Nonfarm Employment Change (U.S, 13:15 GMT)
- GDP (QoQ) + Initial Jobless Claims (U.S, 13:30 GMT)
- Current Account (CAD, 13:30 GMT)
- Chicago PMI (U.S, 14:45 GMT)
Federal Reserve Bank of Dallas President Richard Fisher said Europe’s debt crisis has done more to lower U.S. interest rates than the Fed’s maturity-extension program, known as Operation Twist. While, the Federal Reserve Bank of New York President William C. Dudley said the U.S. expansion will probably continue at a “moderate” pace and that additional stimulus likely won’t be needed unless the economy falters.According to a report released by the National Association of Realtors on Wednesday, pending home sales index tumbled 5.5 percent to 95.5 in April from a downwardly revised 101.1 in March. Moreover, the Conference Board said its consumer confidence index fell to 64.9 in May from a downwardly revised 68.7 in April.
According to an Article published by Bloomberg News, the European Commission challenged Germany’s remedies for the financial crisis, calling for direct euro-area aid for troubled banks and demanding a path to common bond issuance. The commission, the European Union’s central regulator, sided with Spain in proposing that the planned permanent rescue fund, the European Stability Mechanism, inject cash to banks instead of channeling the money via national governments. In addition, an expansion of the euro currency bloc from the current size of 17 nations is unlikely to work out soon, the latest 2012 Convergence Report from the European Central Bank indicated Wednesday.EUR/USD: The EUR/USD was trading slightly higher at 1.23885 at the time of writing after touching its lowest level since nearly 2 years intra trade on Wednesday on fears that rising Spanish bond yields and the growing cost of bank rescues would force Madrid to seek an international bailout. The pair is likely to fluctuate within the resistance level of 1.25073 and the support level of 1.23546 ahead of a very busy European trading session, where lots of economic data will come on market. Key economic data which might affect the trend of the pair are; German retail sales at 07:00 GMT, followed by French producer prices and consumer spending 45 minutes later. 15 minutes after will come ECB Draghi giving a speech, followed by German unemployment change at 08:55 GMT, and EU/Italy CPI figures at 10:00 GMT. While just before the American session starts, ADP Nonfarm Employment Change data will come on market at 13:15 GMT and US preliminary GDP and unemployment numbers 15 minutes later. Market sentiments remain weak on the Euro, if data from the Eurozone do not come as expectations, then we might see the EUR/USD decrease to the key level of 1.23000. Investors should also monitor the latest developments in Greece and Spain to get more visibility on the pair.
USD/JPY: The USD/JPY was trading lower at 78.806 at the time of writing after weaker-than-expected housing data came out of the U.S and on safe haven demand given the increasing uncertainty in the Eurozone. The pair is likely to continue its decreasing trend to hover around the support level of 78.339 during the European session but on the American session we might see a turnaround as lots of important economic data will be released from the U.S, which will impact on the USD/JPY. Investors should closely monitor the following news; ADP Nonfarm Employment Change, U.S GDP (QoQ) data and Initial Jobless Claims in the U.S. If better than expected data are released from U.S, it might boost the demand of the USD, pushing the pair up to hover around the key level of 79.000. Investors should remain cautious on the pair. The resistance level is at 79.651.
Gold: Gold was trading slightly higher at $1564.09 an ounce at the time of writing following disappointing data on U.S. pending home sales. The yellow metal is likely to give up the gains to hover around the support level of 1530.54 as concern that Europe’s fiscal crisis is escalating and driving investors to seek the dollar as a haven over the precious metal. Lots of fundamental news will be released from the eurozone and the U.S throughout the day and these news will for sure impact on the demand for gold. If, weaker than expected data are released from Europe, it will help the commodity to test the support level. Investors should be prudent on the commodity. The resistance level is al 1584.32.
Gold: Gold was trading slightly higher at $1564.09 an ounce at the time of writing following disappointing data on U.S. pending home sales. The yellow metal is likely to give up the gains to hover around the support level of 1530.54 as concern that Europe’s fiscal crisis is escalating and driving investors to seek the dollar as a haven over the precious metal. Lots of fundamental news will be released from the Eurozone and the U.S throughout the day and these news will for sure impact on the demand for gold. If, weaker than expected data are released from Europe, it will help the commodity to test the support level. Investors should be prudent on the commodity. The resistance level is al 1584.32.