IronFX Market Review
Euro Extends Weekly Drop Before Industrial Production, Greece GDP Reports
The euro extended its second straight weekly drop against the dollar before reports forecast to show an expansion in industrial production in the region stalled and Greece’s economy shrank. The 17-nation currency was set for its biggest weekly drop in a month against the yen as traders bet the European Central Bank will cut its key interest rate as austerity measures crimp growth. The Australian and New Zealand currencies weakened before data that may show confidence among U.S. consumers dropped to the lowest level in more than two years, damping demand for higher-yielding assets. Greece, which is struggling to curb budget deficits that sparked the region’s sovereign-debt crisis, will probably report that gross domestic product fell 0.8 percent in the second quarter from the previous period when it rose 0.2 percent.A preliminary reading of the Thomson Reuters/University of Michigan index of consumer sentiment fell to 62 this month, according to the median estimate in another survey before today’s data. That would be the lowest since March 2009. New Zealand’s dollar declined against all 16 major peers. Aussie slipped, too.
FX CALENDAR
Time (GMT +3) Country Importance Event Forecast Previous
8:30 EUR Medium French Prelim GDP q/q 0.3% 0.9%
8:30 EUR Low French CPI m/m -0.2% 0.1%
9:45 EUR Medium French Prelim Non-Farm Payrolls q/q 0.2% 0.4%
11:00 EUR Low Italian Trade Balance -2.50B -2.41B
12:00 EUR Medium Industrial Production m/m 0.1% 0.1%
15:30 USD High Core Retail Sales m/m 0.2% 0.0%
15:30 USD High Retail Sales m/m 0.4% 0.1%
16:55 USD High Prelim UoM Consumer Sentiment 63.2 63.7
16:55 USD Low Prelim UoM Inflation Expectations 3.4%
17:00 USD Medium Business Inventories m/m 0.6% 1.0%
17:00 USD Low FOMC Member Dudley Speaks