Monday, 13 Sep 2010

EUR Maintains Bullishness Throughout the Day

Renewed confidence in the global economic recovery caused riskier currencies to soar throughout the day. Solid Chinese economic news as well as updated euro-zone economic growth forecasts drove market trends. As a result, EUR/USD jumped over 100 pips. Currently the pair is trading around the 1.2870 level. Against the UK pound, the euro saw slightly smaller gains. EUR/GBP has gone up some 60 pips for the day. Additionally, the Swiss franc moved up on the greenback and sterling, gaining 115 and 165 pips respectively.

Tomorrow, traders will want to pay attention to potentially significant news from both the euro-zone and US economies. At 9:00 GMT, the German ZEW Economic Sentiment figure is set to be released. This figure is a measure of German economic health for the next 6-months, according to leading analysts. A positive figure is likely to lead to further investor risk taking. At 12:30 GMT, the US Retail Sales and Core Retail Sales figures will be announced. Retail sales are considered to be a key indicator of overall economic health. As such, these releases have consistently led to market volatility. Traders will want to note that a solid figure is likely to lead to further risk taking, causing the USD to drop further.