EUR/USD Fundamental Analysis March 6, 2013 Forecast

EUR/USD Fundamental Analysis March 6, 2013 Forecast

The EUR/USD is trading at 1.3032 basically flat for the day moving between gains in Asian trading and easing throughout the day. The euro rose to a session high against the dollar on Tuesday on relief that euro zone business surveys were not as bad as previously expected. The euro weakness is seen persisting as the currency bloc’s economy continues to falter; raising the risk the European Central Bank will ease policy in coming months. The single currency climbed to a session high of $1.3075 after a euro zone composite PMI survey came in at 47.9, marginally better than the preliminary reading of 47.3. Euro zone retail sales data also beat expectations and provided a slight boost to the single currency.

 The euro has been unable to make decisive rebounds as sellers emerged at higher levels, and option expiries at $1.3025 and $1.3050 could keep the currency pinned around these levels. Technical charts showed resistance at the 100-day simple moving average at $1.3127. But the larger focus remains the ECB policy announcement on Thursday.

The euro rose for a second day against the dollar after a report showed a gauge of manufacturing and services in the 17-nation region contracted less than economists forecast in February. The euro rose to a session high of $1.30755, up 0.4 per cent on the day, after euro zone services and composite Purchasing Managers’ Index (PMI) figures came in at 47.9, slightly above expectations at 47.3, though it was still well below the 50 mark, which divides growth from contraction. 

Europe’s shared currency appreciated versus most of its 16 major peers as Italian bonds rose after European finance ministers meeting in Brussels yesterday said some nations may be able to loosen targets for the reduction of their deficits. Australia’s currency climbed for the first time in four days as the Reserve Bank kept interest rates on hold and China said it will boost fiscal spending by 10 percent this year.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports

Economic Data March 5, 2013 actual v. forecast

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Government Bond Auction

Date Time Country 

Mar 06 10:10 Sweden

Mar 06 10:30 Germany

Mar 07 09:30 Spain

Mar 07 09:50 France

Mar 07 15:30 Sweden

Mar 07 16:30 Italy

Mar 07 16:00 US

Mar 08 11:30 Belgium

Mar 08 16:30 Italy