The single currency tried yesterday to make a new high but another profit taken wave dragged it lower back again to 1.52 level among gold selling reached 957$. The market is still await of series of data to take new decisions.
Ben Bernanke came with no new yesterday calling mortgager lender to avoid further exposure but the news that bond insurer Ambac is close to a bailout package, eased credit worries given some support of the USD versus gold and the Japanese yen which is expected to be supported this month by the home back reptrations ahead of the financial year ending.
This week ECB press conference should be closely watched as the market needs to know the central bank view of the recent data impact as the germane IFO which can decrease the ECB worries amid this current single currency repatriations which can help containing the high seen inflation rates which declined monthly this month to .4% but 3.2% y/y.
Also we want to watch today's US ISM non-manufacturing index eyeing on the price paid index as the inflation gauge in the sector and the employment index ahead of the non-farm payroll release this Friday. The service figure is expected to come higher to 47 in February from
41 in Jan. by god's willing, the service PMI data are important to be watched from UK and EU too UK figure is expected to be 52.1 and EU 50.9.Also the main clue of the non-farm payroll which is the ADP Employment is expected to be plus 20k from 130k last month. The market is waiting also for the US factory orders data which is expected to be -2.5% in Jan and much weaker data can trigger further USD selling today.
Best wishes
FX Consultant Walid Salah El Din Mob: +20 12 465 9143 E-Mail: snipped-for-privacy@fx-recommends.com