Jan 31 2009
Weekly Forecast - Does ECB Rate Decision Will Change the Euro Trend?
Euro fundamental next week: bearish
Some important news will be issued next week. But among all the news, the European Central Banks(ECB) rate decision will potentially change fundamental trend of currency.
Most of traders are waiting for retail sales numbers from both the Euro Zone and Germany, as well as Factory activity figures. Market also looking out for any additional sovereign debt downgrades among its Members as well as announcements of expanded stimulus and bailout activity
Background:
1. Euro inflation falls near 10-year low 1.1 percent, give ECB space for furtherECB
rate cuts
2. Forecasts of worsening for Europe as growth outlook weaker, policy efforts come up
short and Government debt is cut
