Euro manages to stay out of the full eclipse
At around 1.072, the euro is seeing its strongest rebound after losing over 25% in the last eight months. After Janet Yellen’s statement in midweek the common currency seems to have found some footing and is climbing up.
If here words are combined with those of Mario Draghi and ECB’s quantitative easing, then the fundamentals seem to be in place for a prolonged period of lower euro levels, compared to the highs we saw in the last several years. It remains to be seen when the U.S. will end their own stimulus and respectively influence the amount of money in the economic system.
Technical analysts are also looking at the pattern at the moment and their opinions are split. Some see this latest upturn only as a retracement, while others claiming to see the bigger picture are saying that the drop has run its course and compare it to the one in 2008 in terms of length.
The DAX has been charging ahead and is around the 12 000 level, confirming the bullish sentiment in Europe’s markets. Not even the increasingly harsh tone between Greece and Germany could affect the rally this time.
Monday 23.3.15 – As calm as can be in terms of announcements. News on Greece from the weekend or a large move on Friday’s U.S. session might set the tone for the day.
Tuesday 24.3.15 – Probably the most active day next week with five numbers coming out from different corners of the world.
Early risers and night owls will be looking at the 1:45 Manufacturing PMI from China for signs of how the Chinese economy is faring. With the availability of yuan pairs in the Trading 212 PRO platform, it will definitely gather more attention.
The European Session has the French and German flash manufacturing PMI’s at 8 and 8:30am GMT, as well as the British year over year Consumer Price Index at 9:30am. The last one will come with five more data bits, so the pound might see some volatility.
12:30pm GMT will have the CPI and Core CPI numbers from the U.S., which coupled with the New Home Sales coming out at 2:00pm GMT will form one of the brief moments in the whole week that can potentially shake things up after.
The final moment of activity will come at 9:45pm GMT when New Zealand announce their trade balance.
Wednesday 25.3.15 – Two announcements for midweek – 9:00am GMT German Ifo Business Climate could move the euro and th 12:30pm GMT Core Durable Goods Orders from the States.
Thursday 26.3.15 – Quiet Thursday compared to what we usually get on that day of the week. Still there will be several more interesting points.
Great Britain will be divulging their retails sales data at 9:30am GMT, followed by the U.S. unemployment claims data at 12:30pm GMT. The Canadian dollar could have an interesting day with the governor of their Central Bank speaking at 1:30pm GMT.
Friday 27.3.15 – As barren as they get. Six minor data releases in total for the euro and dollar, but none of them with an impact potential to change things. Low volume expected if there is an absence of any other news.
Our weekend reading selection:
Gold will be priced in a different way from today, here’s a bit more detail on that: (Minning.com)
The surge of the DAX is definitely standing out this year, it’s definitely worth the read about what’s behind it. (Bloomberg)
Europa and the UK are positioning themselves for things to come, despite what the wishes of its close partner across the pond. (Economist, registration required)
With the addition of the Chinese yuan to our forex offering, we start to look more at what is happening in the world’s second largest economy and its currency. (Financial Times)
Profiting yourself and the greater good? Big funds like Blackrock also think its possible. (Institutional Investor)
After our series on how much time you need for trading, we continued searching for articles on the subject of work-life balance and this one caught our eye. Although we don’t exactly agree that it’s tyranny, there are some good points. (Brain Pickings)
Hopefully something that will sweep across all technology – no password required for log in. (TechCrunch)
We also take a look at what virtual reality will bring to us, although we can’t imagine what employer would let you flap your hands around like that while others are working. (Youtube – Magic Leap channel)
The solar eclipse passed over us and we went around looking for some of the more interesting impacts of the celestial event. (World Economic Forum)