Here are the key factors to keep in mind today for Euro trades:
- Greece: The Greek government decided to hold a referendum and allow its people to decide on austerity. This was their democratic right and makes sense, but any vote will come after tomorrow’s deadline at which point the Greek government has to repay €1.3 billion and the current aid runs out. Greece could enter a technical default which has spooked Euro bulls. The Euro opened this week’s trading sessions down by over 200 pips as the announcement of the referendum has caused a massive spike in sell orders amid uncertainty over how the Greek people will vote and what consequences the Euro will suffer as a result.
- Eurozone Confidence Report: Besides the Greek situation, forex traders will get some important economic data out of the Eurozone. Economists expect Eurozone Economic Confidence to remain unchanged at 103.8 in June. The Eurozone Business Climate Indicator is expected to decrease by 0.01 in June to 0.27 from the 0.28 reported in May. Eurozone Industrial Confidence is expected to remain unchanged in June at -3. Eurozone Services Confidence is expected to increase by 0.2 in June to 8.0 from the 7.8 reported in May. The final reading on Eurozone Consumer Confidence is expected to show no change at -5.6.
- German CPI: Expectations call for an increase of 0.2% in the German CPI for May and for a year-over-year increase of 0.5%. Forex traders can compare this to the 0.1% increase reported in April monthly and the year-over-year increase of 0.7%.
Here are the key factors to keep in mind today for US Dollar trades:
- US Pending Home Sales: Economists expect an increase of 1.4% in pending home sales for May month-over-month and an annualized increase of 11.6%. This can be compared to the 3.4% increase which was reported in April and the annualized increase of 13.4%
- US Dallas Fed Manufacturing Activity Index: Expectations call for a reading of -16.0 for June which forex traders can compare to May’s reading of -20.8. This would point towards more economic problems out of the US.
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