A Watch-and-Wait Week: Eyes on the Euro and Shanghai Composite index?
Eyes on the Euro?
There are a few key points to mention in this latest segment of online Forex trading news.
This week, the relationship between the dollar and the euro remained relatively unchanged after unexpectedly weak American housing data was released.
Analysts had expected the market to rise a single percentage point and yet, statistics showed that sales dropped 1.5 per cent.
Regardless of this backtrack, the value of the dollar was only mildly affected. Thus, the strength of the euro has remained relatively unchanged.
Of perhaps greater importance is the fact that the Eurozone is expected to release monetary supply, CPI and unemployment data later this week. Although some analysts have found that private sector lending has slightly eased, domestic lending has somewhat tightened.
Another factor to weigh in is the slow growth of the Eurozone economy as a whole. However, this may be somewhat blown out of proportion. It is worth noting that current figures are nearly in parity with predicted growth. Online Forex investors are still likely to note that year-on-year growth has slowed as much as 1.4 per cent.
Asian Woes
On the other side of the world, Forex traders still bemoan the weak and disturbing data emerging from Asia. Not only is the Bank of Japan expected to hold a policy meeting later this week, but the People’s Bank of China (PBoC) hinted that continued downward economic pressure could affect future stability and growth.
The benchmark Shanghai Composite index showed early losses; perhaps hinting at a short-term bearish trend until it is known how many investors are liquidating their equities in favour of commodity-based assets.
These are the two major areas which will be the focus of online Forex investors this week. With a bearish hint still in the air, many traders are likely to take a relatively cautious approach.
