The USD finished the week softer against the EUR and GBP. Although Wall Street continues to turn in tentative results the broad market place showed that enough risk appetite exists in order to create a strong debate among bulls and bears. The greenback essentially finds itself at the weaker parts of its strong trend versus the EUR, and the GBP has pulled itself back into a fairly buoyant range. The U.S. did not release any major data on Friday, but investors will get New Homes Sales figures today and the estimate is 317K compared to the previous result of 300K. The housing market in the States remains a critical part of the economy and today’s numbers will be watched carefully. Tomorrow the CB Consumer Confidence reading and the S&P/CS Composite 20 HPI will be published. Highlighting the data this week in the States will be the Advanced GDP which will be brought forth on Friday.
Quarterly earnings will continue from the U.S. today and Wall Street will continue to keep a keen eye on the corporate reports. Some of the companies that will bring their numbers forward today are McDonalds, Honeywell, Akzo Nobel, and Ford. The USD has taken a hit as traders have shown the ability to push away concerns about a sluggish recovery in the States, questions about the methodology of the European Bank Stress Test Results, and continued evidence that a large proportion of investors remain sitting on the fence. Traders have found opportunity if they have had the ability to test ranges. Having said that, a huge amount of questions remain about the health of the major international economies, and the currencies and equity markets still have many hurdles to jump over.
Written by bforex.com
