The US dollar erased the gains in the previous week on the surprising outcome of the EU Summit. The dollar’s fall lasted longer this time. So is this a game changer for all currencies? Or just a longer rally until the mood dampens again? US Non-Farm Payrolls and rate decisions in the UK, Australia and the euro-zone are the highlights of a busy week that begins a new month and a new quarter. Here is an outlook on the main market-movers ahead.
The leaders of the EU decided on allowing the bailout funds to directly buy bonds and recaptilize the banks, providing a lot of hope for resolving the debt crisis. There are quite a few conditions there, but the markets seem to ignore them now, as stocks and risk currencies gain. In the US, weekly jobless claims dropped 6,000 to 386K from last week but remain on higher ground towards the all-important NFP. Meanwhile the US housing sector has continued its recovery trend with an unexpected rise of 369K in new home sales and an unpredicted surge of 5.9% in Pending Home Sales. Lot’s of US figures await us now. Let’s Start
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