Friday May 30, 2008 - 11:16:23 GMT
Share This Story
FXCM - www.dailyfx.com
Forex Research - Euro Dips Below 1.5500 As German Retail Sales Plunge
Euro Dips Below 1.5500 As German Retail Sales Plunge
Retail Sales plunged -1.7% versus an expected 0.6% gain dragging EURUSD
below the 1.5500 figure for the first time in 10 days.
â€¢ Japanese Yen: 105.50 holds most of night as Nikkei rallies
â€¢ Euro: German Retail Sales plunge pushing unit below 1.5500
â€¢ Pound: Plumbs 1.9700 but bounces
â€¢ Swiss Franc; KOF shows a slowdown
â€¢ US Dollar: PCE, Chicago PMI on tap
German Retail Sales plunged -1.7% versus an expected 0.6% gain
dragging EURUSD below the 1.5500 figure for the first time in 10 days.
When adjusted for inflation German consumers spent less that last year
as skyrocketing gasoline prices sapped purchasing power in Eurozoneâ€™s
largest and most important economy.
The news was particularly surprising given the robust rebound in Retail
PMI numbers earlier in the week, but nevertheless confirms the overall
trend of the most recent data from the region which shows that the
European economy is suddenly stagnating. The EURUSD plumbed an
overnight low of 1.5467 but managed to climb back above 1.5500 by
early New York trade on the back of hotter than expected EZ CPI data
which registered a record reading of 3.6% annual rate.
The story in the EZ is a familiar one as inflationary forces are
counterbalanced by rapid deceleration in consumer demand leaving the
ECB monetary policy essentially at a standstill. The EURUSD has been
hit hard this week, as currency traders focused on a string of
disappointing economic releases from the region. Next week however, the
dynamic may turn as US data takes center stage and all attention turns
to the NFP report. For the time being US economy has avoided falling
into a recession and through hardly stellar, the US GDP report this
week was revised upward to 0.9% eking out small but positive growth.
Todayâ€™s Chicago PMI report may provide a glimpse into next weekâ€™s ISM
Manufacturing data with markets expecting a slight increase from the
month prior. Trading is likely to remain quiet for the rest of the day
as EURUSD consolidates near the midfield line of its 1.50-1.60 range
and prepares for next weekâ€™s key events which could disrupt the general
sense of equilibrium currently in the FX market
EURUSD 1.60 or 1.50? Join us in EURUSD Forum
Â©2008 DailyFX. All Rights Reserved.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."