Monday, 3 May 2010

Euro Still Down as Investor Concerns Loom

The U.S. Dollar has largely maintained its gains against the Euro so far today, as uncertainties about Greece's bailout package, combined with further Euro-zone debt worries kept investors away from the troubled currency. While news this weekend largely focused on the overdue bailout package, investors largely paid attention to the news that Germany is still reluctant to contribute to the 110 billion Euro package. Furthermore, concerns regarding both Spain and Portugal's credit ratings caused the EUR/USD to drop over 100 pips in overnight trading. Currently the pair is trading around the 1.3240 level, largely unchanged from earlier today.

Traders will want to pay attention to the U.S. ISM Manufacturing PMI set to be released at 14:00 GMT today. The PMI is considered to be one of the leading American indicators, as it is a direct reflection of how U.S. purchasing managers view the current economic climate. Analysts are forecasting a slight increase in the PMI rating from last month. If the forecasts indeed come true, traders can expect the Dollar to extend its bullish gain against its main currency rivals like he Euro.