Traders have been closely watching the Euro for some time, wondering what was going to happen next. Even now, with it trading higher than in the past couple of months, they have to wonder if it will continue. What will the next news report do to the price of the Euro?
Consumer confidence has been negative for some time; it is expected to drop from last month’s -21 points. PMI is expected to remain about the same as last month overall. Services will be around the same and manufacturing should show contraction.
Industrial New Orders will be announced on Tuesday. Last month, the small rise was less than expected and experts are predicting a drop this month. The NBB Business Report will be announced right after the Industrial New Orders. It is a good indicator of what the market is doing and it is expected that there will be a small improvement but still remain negative.
German reports will be released this week: the German Ifo Business Climate, German GfK Consumer Climate, and German Import Prices. Since Germany has not been severely affected by the debt crisis, all three reports are expected to show small increases.
The M3M Money Supply tells how much money is in circulation to help move prices and improve economies. It fell last month, but an increase is expected this month. The report will be released on Friday.
Along with the reports that will be released to directly affect the Euro, there are other reports that will influence currencies and the market as a whole. The Japan rate decision will be made on Tuesday and no change is expected.
The US will be releasing reports that will have a major impact on the dollar and its relation to other currencies: US Durable Goods Orders, US Unemployment Claims, and US New Home Sales and Pending Home Sales.