On Tuesday, significant fluctuation is expected on the forex market mostly because of European and American results. But mostly American data will affect major currency pairs significantly and most of the activity will take place in the afternoon. At 11:00 AM, German GDP results will go public. These measure the value of German goods and services produced in this period and a growth of 1.2% is expected which is positive for the economy. And considering the importance of the German economy on the EUR, a value like expected or higher may affect the currency significantly upwards and conversely. At 13:30 PM, British results concerning loans for house purchase will be released and forecasts are for a value less than previously which may reflect weakness in the housing market and could affect the GBP bearishly. In addition, at 14:00 PM, governor Carney will make a speech in London and if the BOE anticipates growth in inflation and has a hawkish intention, the GBP may move bullishly and conversely. However, the governor’s speech will have a significant stronger effect than the loans result on the currency. At 17:30 PM, American GDP results will be released and a strong growth of 3.3% is expected. That reflects a positive outlook for the economy considering the production of goods and services in the US grew strongly. Thus a result like expected or higher could push the USD strongly upwards causing significant fluctuation in major currency pairs. But a change below that even if positive may affect the currency bearishly. Later at 19:00 PM, American consumer confidence results are expected. A high level of confidence shows better spending intentions which may hint for better economic activity next. Forecasts are for a value of 96 which is historically high and better than previously. Thus is results meet or exceed forecast, the USD could rally and conversely for a value below 96.0.
Posted on: Tue, 25 Nov 2014 07:29:39 +0000
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