Set To Generate Heavy

Following multiple failures by Greek politicians to form a new government, investors are now concerned about what impact a possible new election will have on Greece's status in the euro-zone. The news weighed down on riskier currencies, particularly the euro, throughout Friday's trading session. The EUR/USD dropped to a fresh 3 ½ month low at 1.2903 before staging a slight correction to close out the week at 1.2917. Turning to this week, euro-zone news is once again forecasted to dictate the direction the market takes. Any additional negative announcements out of Greece could drive the euro even lower against its main currency rivals. Economic News USD - US Consumer Sentiment Gives Dollar a Boost vs. JPY News that consumer sentiment in the US reached a more than four-year high gave the ...

(Reuters) - Quarterly reports from some of Europe's top banks showed the scars of the euro zone crisis on Thursday, with big losses on Spanish property, and fragile markets casting a shadow over the rest of the year despite an early investment banking rebound. Spanish bank Santander said first quarter net profit dropped 24 percent after it took a 3.1 billion euro ($4.1 billion) provision to cover rising loan defaults, as the effects of Spain's property market crash were compounded by economic recession and joblessness afflicting nearly one in four workers. Although results from Barclays and Deutsche Bank showed investment banking income bounced back strongly after a torrid end to last year, the sickly euro zone economy continues to dog the industry. Barclays beat analysts' forecasts ...

(Reuters) - Asian shares rose on Thursday, retaining positive momentum as the Federal Reserve reassured markets it would keep its very accommodative stance to support growth, while optimism grew over strong quarterly corporate earnings. Investor confidence was also boosted by a rally in Apple Inc shares as it reported quarterly profits nearly doubling on the back of soaring iPhone sales in China, lifting tech-heavy Asian markets such as Taiwan and South Korea earlier in the day. There was skepticism Asian markets would climb as much as their global counterparts did overnight, however, as concerns remain over European banks, with Spain's Santander reporting its first-quarter results later in the session. European shares were likely to start mixed, with financial spreadbetters predicting ...

Forex News and Events: Worries over Europe resurfaced yesterday as weak data, uncertain political environment and questionable support from the IMF all highlighted potential weak spots. The additional $430bn from the IMF fell short of the whispered $600bn that had circulated around the market and the additional funds came with heavy caveats that these funds were not guaranteed to go to Europe. So the lingering questions is under what conditions they might be pointed towards Europe. Meanwhile, the first release of euro-zone budget deficit and government debt figures for 2011 exposed a couple of interesting notes. First the euro-zone budget deficit dropped to 4.1% of GDP from 6.2% in 2010 but this decrease was not enough to stop government debt from climbing to 87.2% from 85.3%. Composite ...

The euro turned bearish against virtually all of its main currency rivals yesterday, as risk aversion returned to the marketplace ahead of today's Spanish debt auction. Additionally, a positive UK Claimant Count Change figure led to a steep drop for the EUR/GBP. Today, in addition to the Spanish news, traders will want to monitor a batch of US news, including the Unemployment Claims and Existing Home Sales figures. Should any of the American news come in above expectations, the US dollar could see gains as a result. Economic News USD - US Existing Home Sales May Lead to Dollar Gains The combination of worries regarding euro-zone debt and the Japanese trade deficit caused investors to shift their funds to the greenback during yesterday's trading session. The EUR/USD dropped close to 70 ...

The euro hit a three-week high vs. the US dollar on Friday, following a disappointing US housing figure. The New Home Sales figure came in at 313K, well below the 326K analysts had been forecasting. The EUR/USD moved up as a result, reaching as high as 1.3282 before staging a slight downward correction to close out the week at 1.3268. Turning to today, traders will want to note the US Pending Home Sales figure, scheduled to be released at 14:00 GMT. Should the figure come in below the forecasted 1.0%, the euro may be able to extend its bullish run against the USD. Economic News USD - Dollar Turns Bearish amid Disappointing Housing Data The dollar fell against most of its main currency rivals on Friday, following the release of a disappointing housing statistic. While most other sectors ...

(Reuters) - Chinese manufacturing slumped for a fifth month in March and the euro zone economy is showing new signs of wilting, according to surveys on Thursday that pointed to weakening global demand. Only the United States is showing signs of momentum at the moment among the world's top economies, underlined by jobless claims falling to a fresh four-year low last week. Still, investors were unnerved by the reports from Asia and Europe, selling riskier assets such as stocks. Thursday's batch of purchasing managers indexes (PMIs) suggested China and Europe will not contribute to a global upturn anytime soon. Factory activity in China shrank for a fifth straight month in March, hit by declining order books, disappointing exports and new hiring hitting a two-year low. By contrast, ...

The US dollar was able to reverse some of its recent losses during the afternoon session yesterday, following the release of the Existing Home Sales figure. While the figure came in below expectations, it was still taken as a sign that the housing market in the US is improving. Turning to today, the marketplace could see some volatility as significant British and euro-zone news is set to be released. Traders will want to note the results of the British Retail Sales figure and a speech from the ECB President. Should either of them turn out to be positive, there may be an increase in risk taking throughout European trading. Economic News USD - Housing Data Boosts Dollar The US dollar saw gains against several of its main rivals yesterday, as investors took recent higher US treasury ...

Investor optimism that Greece would successfully execute an important debt-swap, boosted riskier assets throughout yesterday's trading session. As a result, the EUR/USD shot up over 100 pips during the European session, reaching as high as 1.3272. Today, the US Non-Farm Payrolls figure is forecasted to generate significant market volatility. Assuming the indicator comes in as expected, risk taking may increase, which could help the euro extend yesterday's gains. Economic News USD - US Employment Data May Lead to Dollar Gains The US dollar took some losses against its riskier currency rivals yesterday, after positive euro-zone developments caused investors to move away from safe-haven assets. Against the euro, the USD tumbled well over 100 pips, while the AUD/USD jumped as high as 1. ...