28, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The economic calendar is poor this week that will compensate a last week high volatility caused by FED and the Bank of Japan reports.

Last week S & P showed a three-day falling since a record high. It will probably continue to fall and this week. The market is shivering after rumors regarding QE3 purchasing, Fed Chairman Ben Bernanke’ comments and the minutes and decisions of the last FOMC. Vague plans regarding the QE3 reduction is likely to work against the dollar.

While the euro was more stable against other currencies last week, it is likely to continue the present trend. There are a number of topical issues in the euro zone: the recession and financial instability.

Germany and the employment data, the annual report of the Bank of France, are noteworthy GDP growth in Q1 forecast, Slovenian data which are more likely to impact the market.