Week in FX Europe – German IFO and Fed Mixed Signals Boost EUR

May 24, 2013 Share Print 0

The EUR/USD had a roller coaster ride. Last week Fed member comments regarding a near end of the US QE program sapped strength away from the EUR. This week Fed Chairman Ben Bernanke warned against ending the program too soon, as it might hurt more than help. The comments and a surprisingly strong German IFO Business Climate figure drove the EUR/USD above the 1.29 level.

The GBP/USD continues to struggle even as employment numbers were positive in the UK. The pound sterling (GBP) continues trending lower toward US$1.50 and recent British retail sales figures are the culprit. Though analysts had expected little to no decline, Great Britain’s April retail sales were 1.3% lower than the previous month. As a result, the GBP continued to lose ground versus the greenback

Monday is a holiday in the US and the UK and next week there is are German and European inflation releases as well as GDP releases in the US and Canada.

WEEK AHEAD

* JPY BOJ Governor Kuroda Speech in Tokyo
* JPY Bank of Japan meeting minutes
* USD Consumer Confidence
* JPY Bank of Japan conference
* EUR German Unemployment Change
* EUR German Consumer Price Index
* CAD Bank of Canada Rate Decision
* USD Gross Domestic Product
* USD Gross Domestic Product Price Index
* JPY National Consumer Price Index
* CNY Manufacturing PMI
* EUR Euro-Zone Consumer Price Index
* CAD Gross Domestic Product

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.