EUR/USD Fundamental Analysis June 6, 2013 Forecast

Analysis and Recommendations:

The EUR/USD eased a bit but remains strong against the weak US dollar ahead of tomorrow’s central bank meeting where traders are expecting the bank to hold rates and policy and announce that the eurozone has reached the beginnings of a recovery supporting the euro. Today, the markets are waiting for Friday’s nonfarm release, which puts a lot of focus on ADP private employment report—consensus calling for165k in job gains. This would be a positive release and stir USD strength. Note that even with the new methodology ADP has been a poor predictor of nonfarm and often faces significant revisions. However, with nothing else to trade on the market will be watching ADP closely.

The euro appreciated marginally by 0.01 percent in yesterday’s trade on the back of favorable Spanish unemployment change data. Further, mixed global market sentiments also acted as a positive factor for the currency. The euro touched an intra-day high of 1.3101 a 1.3078 against dollar on Tuesday. However, sharp upside in the currency was capped on account of strength in the DX.  Spanish Unemployment Change declined by 98,300 in May as against an earlier fall of 46,100 in April. European Producer Price Index declined by 0.6 percent in April from previous decline of 0.2 percent a month ago.

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 June 5, 2013 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Jun 06 00:30 Japan

Jun 06 08:30 Spain

Jun 06 08:50 France

Jun 06 11:00 Norway

Jun 06 15:00 US

Jun 07 15:30 Italy