EUR/USD Fundamental Analysis September 28, 2012 Forecast

Analysis and Recommendations:

The EUR/USD is trading at 1.2894 in a fairly flat day. For Greece there is rising speculation over who between the IMF, EU governments and ECB will bear the brunt of any concessions on the country’s aid package. Today’s German unemployment release was in line with expectations, a loss of a modest 9k jobs and an unchanged unemployment rate at 6.8%. Event risk continues to be an important driver of financial markets; however we re‐iterate that today and tomorrow’s events are important but serve more to create noise; whereas next week’s ECB (October 4th) and non‐farm payrolls release (October 5) will prove more important drivers.

Market mood was seen dreary ahead of the Spain’s budget announcement, which could help pave the way for a bailout request and could implement more austerity measures amid mounting apprehensions in the country. Also, series of downbeat growth numbers out of the major economies of the world is also baffling investor sentiments. With the U.S economy sluggish and Fed sounding pessimistic over recent economic activities, the annualized growth figures today could signify the current state of the economy.  Also, shoring up the sentiments over the weekend ahead of a weeklong Chinese holiday, would be the manufacturing figures from largest metal consumer, China amid derailing growth story in the nation. In the wake of modest economic data, it remains to be seen if the Chinese central bank do sprung any surprise by boosting liquidity in coming days.  On the whole, week’s moves could remain engulfed to cues out of the U.S and Europe.

In the US today pending home sales reported under forecast, with yesterday’s dismal new home sales also doing the same and durable goods shocking trader with huge declines. The only bright spot was unemployment claims were lower.

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 September 27, 2012 actual v. forecast

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

Government Bond Auction

Date Time Country 

Oct 01 10:00 Norway 

Oct 02 09:15 Austria 

Oct 02 09:30 Belgium 

Oct 02 09:30 UK 

Oct 02 14:30 UK 

Oct 03 09:10 Sweden 

Oct 03 10:00 Norway 

Oct 04 08:30 Spain 

Oct 04 08:50 France 

Oct 04 15:00 US 

Oct 05 15:30 Italy