Eurozone PMI figures

On June 25, 2012 | By | In News

Euro flag
The first set of June’s Eurozone PMI figures, widely viewed as an economic barometer for the region, signals a continued bullish trend for investors in relation to the value of the Euro. Of further importance is how many online forex traders look to this single European currency as a benchmark for general global economic output. This is a primary reason why forex-linked stocks have seen punishing downtrends so far in 2012.

Another factor weighing heavily upon market sentiment is the Spanish banking situation as it currently stands. Confidence seems to be eroding as to whether the bank bailout recently enacted is enough to keep Spain afloat. While initial responses were moderately positive, this reaction soon faded as investors realised that these funds will most likely do little to ease Spain’s economic and employment woes.

Conversely, the US dollar has risen in safe haven demand due to the Federal Reserve downgrading its forecast for economic growth. This, in turn, may present a potential sell opportunity for the Euro and a short-term buy for the dollar in reference to forex trading. With rather sluggish US data and continued negative sentiment in the Eurozone, online traders should expect further volatility ahead.

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