Week in FX Europe – EURO Landing Continues To Have Opportunities

Posted by Dean Popplewell at 12:57 pm EDT, 01/25/2013

Europe is “the land of opportunity” so says the deep in the profit long EUR investor. It was only a couple of weeks ago that the psychological 1.35 level was a mere mirage. It is now becoming just another small hurdle to take out. Falling Euro periphery yields and Friday’s LTRO schedule repayment results are giving the ‘single currency’ some new found momentum that wants to push it towards the new psychological point of 1.37. Investors are now asking ‘and why not.’

The Euro fiscal situation is becoming more improved. The ECB is pro-actively reducing their balance sheet while the Fed is adding to theirs. An improved fiscal situation will eventually translate into a much-improved economic one. Yesterday’s poor US new home sales will continue to weigh on the ‘big dollar.’ Even after four years, it is hard to say what the long term prospects are for the US housing market as things remain far from great!

WEEK AHEAD

* USD Gross Domestic Product Annualized
* USD Fed Interest Rate Decision
* USD Fed’s Monetary Policy Statement and press conference
* NZD Monetary Policy Statement
* NZD RBNZ Interest Rate Decision
* EUR Consumer Price Index
* EUR Harmonised Index of Consumer Prices
* USD Core Personal Consumption Expenditure – Prices Index
* USD Nonfarm Payrolls
* USD Unemployment Rate

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Week in FX Europe – EURO Landing Continues To Have Opportunities

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