Last week was quite dramatic for the pair, as it demonstrated high fluctuations and instability. Last Monday the opening price of the euro against the dollar was 1.3951, and on Friday the pair closed the week at 1.3952. However, on Tuesday, the pair demonstrated an extreme drop of 0.0263 pips, which was quickly corrected the following day when the pair reached a closing price of 1.3975. This Monday, the euro’s opening price was 1.3961 dollars, and is currently trading at as high as 1.4010 dollars.
GfK German Consumer Climate, 7:00 a.m. GMT. The data for the index is derived via a survey of 2,000 consumers who need to rate the level of past and future economic conditions, including personal financial situation, climate for major purchases, and overall economic situation. The index is important because financial confidence is a leading indicator of consumer spending. It is expected to go as high as 5.2 this month, as it is currently 4.9.
Buba President Weber Speaks, 8:00 p.m. GMT. Buba=Deutsche Bundesbank, ECB=European Central Bank. The Deutsche Bundesbank President Axel Weber will speak on Tuesday about the financial markets at the Commerzbank’s Blessing Podium.
German Prelim CPI m/m, all day. This is the change in the price of goods and services purchased by consumers, and is an important event as consumer prices account for the majority of overall inflation. A small increase is expected this month – from the current
-0.1% to 0.1%.
French Consumer Spending m/m, 7:45 a.m. GMT. The consumer spending accounts for the majority of overall economic activity because it measures the change in the total value of inflation-adjusted goods expenditures by consumers. Again, an increase is predicted this month to 0.5% as the current is -1.6%.
M3 Money Supply y/y, 9:00 a.m. GMT. The money supply measure the change in the total quantity of domestic currency in circulation and deposited in banks. Economists say the index will demonstrate a slight increase from the current 1.1% to 1.4% which will be a positive sign for the currency.
German Unemployment Change, 8:55 a.m. GMT. The unemployment change is the change in the number of unemployed people during the previous month. The index is also called Jobless People. The previous number of the index is -40K, and the forecast for the new month is -27K which, if it comes out true, will not be good for the currency.
ECB President Trichet Speaks, 9:30 a.m. GMT. The ECB President Jean-Claude Trichet is about to hold a press conference along with the Governor of the Central Bank of Cyprus Athanasios Orphanides, at the 6th High-level Eurosystem seminar with Mediterranean countries’ central banks, in Pafos.
German Retail Sales m/m, 8:00 a.m. GMT. The retail sales measure the change in the total value of inflation-adjusted sales at the retail level, excluding automobiles and gas stations. So far, no data is released on the forecast.
CPI Flash Estimate y/y, 10:00 a.m. GMT. The index measures the change in the price of goods and services purchased by consumers. No significant change is expected – predictions indicate 1.7% for this month. The previous was 1.8%.
Unemployment Rate, 10:00 a.m. GMT. The unemployment rate is not expected to change this month. The forecast shows it will remain at 10.1%.