Forex Analysis: EUR Takes a Hit, June 30th, 2011 [article from Articleranks]

Forex Analysis: EUR Takes a Hit, June 30th, 2011

Risk appetite has come forth as the austerity measures appear to be well on the way to overcoming their challenges via passage in the Greek government. Investors have seemingly bought into the short term optimism. The EUR gained appreciably against the United states dollar on Wednesday adding to its recent winning streak. The Gbp and AUD in addition have followed suit and have made steps against the Dollar. Global equity markets have turned bullish also and have been guided by Wall Street which has put together a great few trading sessions repeatedly. The Greek government has another package of measures which have to be passed today via a vote, but it surely appears that this is going to be realized. The EUR saw a stable amount of assistance before the Greek votes were known yesterday and the query can become how much more backing the Single Currency can muster.

The confidence game that's been played out by the E.U. and IMF has passed its tests for the time being but a good amount of troubles endure. European data are going to be relatively light but German Retail Sales and their Unemployment Change quantities will be posted. However the target will definitely carry on being on the debt dilemma and it handling for the EUR. The U.S. posted a good Pending Homes Sales amount on Wednesday. Its result of 8.2% was really a shocking leap over the expectation of only 2.4%. Today the weekly Unemployment Claims will come from the States combined with Chicago PMI reading. Yesterday's better housing sector outcome was welcomed with open arms, nevertheless the unemployment situation stays bothersome and the Manufacturing marks recently have shown a gradual withering of sentiment. The United states dollar has been beaten back again this week and this has come as the debt situation in Europe has reduced for the moment and Wall Street has found some stableness through gains. The United states dollar needs to be watched closely these next two days after being pressed back to the weaker part of its range against the EUR and AUD.

U.K. information on Wednesday furnished very little when it comes to surprises, but the Gbp managed to gain under the sails of a good breeze from the EUR. The Nationwide HPI will be introduced this morning, that will get the passions of some investors and carries an expectations of 0.1%. The Sterling has presented little in the way of fireworks in comparison to the EUR/USD pair in the recent weeks. The range for the Gbp has been rather tame. Possibilities exist within the Gbp for traders prepared to test its range.

The AUD nearly changed just about all loses from the past two weeks on Wednesday. The AUD finds itself straight on the more powerful side of its range again. This has occurred as the European debt circumstances has made easier at the moment and Gold has rebounded. The precious metal right now is around 1508.00 United states dollar. Crude Oil combined with the other commodity markets gained as well. The JPY went back to the more powerful part of its well-known consolidated range up against the United states dollar.

These subsequent two days of trading should contain the variety of questions being asked about Greece and how it can really fulfill its austerity measures. The confidence game that is being played by officials who will be trying to sell the song of stability for the European Union, even though its debt situation still has blemishes is a certainty to continue. For the moment investors have apparently calmed their nerves enough to participate with increased risk appetite in the Forex and Commodity markets.

tags:Forex,gold,oil