We are back from our holidays, fully rested and rearing to go. The significant development that occurred while we were away was perhaps a possible resolution, for the time being anyway, of the Greek situation. Let us hope it grows into the permanent removal of an issue that has blighted to Euro zone for too long.
Busy week for announcements
This week there will be some important economic events, which will have the potential to cause movement in pairs involving the US dollar and the Euro. Today will see Durable Goods Orders from the
In the past, these have been less than stellar and when they come out, it
appears many market participants do not know exactly how to react to them. The
result on the occasion of the last few monthly readings has been short-term,
bi-directional volatility at the time of the announcement. This can be bad for
trading profitability as Stop-Loss orders are in danger of being hit. US
Tomorrow (Tuesday) sees US Consumer Confidence figures and the Markit Services Purchasing Managers’ Index (PMI).
Wednesday is the biggie, when the Federal Reserve releases its monetary policy statement. There will also be a decision on interest rates. No change is expected here but the statement will be carefully parsed for indications of when rates might start to rise.
Thursday has US GDP and Friday will see the release of Eurozone inflation figures. These last are important because of the worries the ECB has had in the past about negative inflation, or deflation.
Friday also sees the Reuters/University of
Sentiment Index, which can move the market late in the day (from the standpoint
session) and at the end of the week. London