The USD Continues to Fall Yesterday’s trading continued to be extremely volatile, and the major currencies continued to fluctuate within a very high range. However, the better-than-expected figures form the Europe’s leading economies (Germany and France) helped push up the EUR vs. the USD. The more signs that the world is pulling out of recession; larger changes are likely to take place in the forex market. Daily Forex Tips
As for today’s trading, inflation reports are expected from both Europe and the U.S. During the morning, the Euro-Zone inflation data will be released as the CPI reports are expected to show mixed results. If both indices (CPI and Core CPI) will deliver positive figures, the EUR is likely to be boosted. However a worse-than-expected result could correct all the gains the EUR saw yesterday. At 12:30 GMT, the highlight of the day is expected as the U.S inflation reports will be released. Following yesterday’s poor economic data from the U.S, another negative figure could drop the Dollar further, and today’s fall could get be even harsher. However, if the data will come out positive (mainly the Core CPI), it could boost optimism that the economy is indeed doing much better than analysts expected it to do, and thus the Dollar will probably strengthen as a result.