Tuesday, 4 Jan 2011

EUR Lower vs. Major Currency Pairs

The euro slid from three-week highs against the dollar on Tuesday, weighed down by unexpectedly strong U.S. factory numbers, with further pressure likely given doubts over the euro area's bond issuance. The EUR is currently trading lower against the USD by nearly 50 pips at 1.3295. It is also trading lower against the GBP.

Data showed new orders received by U.S. factories rose in November and orders excluding transportation recorded their largest gain in eight months, fueling dollar buying versus the euro.

Tomorrow, forex traders cannot afford to overlook, a batch of data is expected from the leading economies. Both the US ADP Non-Farm Employment Change and ISM Non-Manufacturing PMI will be released at 13:15 GMT and 15:00 GMT respectively, promising an extremely volatile trading day. Traders should take advantage of this unique opportunity and use the volatile market in order to capitalize profits.