Monday, 29 Jun 2009

Weak Fundamentals, but Confidence Remains Strong

With the July 4th independence holiday coming soon in the United States, most of the economic calendar this week is devoted to the EUR, GBP, and JPY. Today's reports continued the trend we've seen over the previous few trading days. Primarily, that confidence in the Euro-Zone's economy is growing despite the continuous stream of negative data. Individual lending and mortgage approvals in Great Britain both fell this month, but the Pound continued to gain strength, and a minor confidence report from Europe showed rising confidence. This illustrates a high level of optimism in the European economy despite the fundamentals. We could see speculation take over the forex market in the coming days as the USD drops in value and the European currencies advance.