EUR/USD Trends August 16-20 2010

EUR/USD

Last week the euro fell drastically despite the recent trend of recovery. It opened last Monday at 1.3282, then started dropping down and on Wednesday it made the biggest fall from 1.3184 to 1.2842. The euro finally made it to August 13, at the lowest for the week price of 1.2750.

This week, it is showing a sign of growing as it started this Monday at 1.2770, and is currently trading at 1.2863. Last week’s drop, however, is keeping traders on the verge, and it’s too early for the current euro growth to bring the positive sentiment back.

Tuesday

Current Account, 9 a.m. GMT. The Current Account measures the difference in value between imported and exported goods, services, income flows, and more. Although it was predicted to go up from -7.4B to -3.7B, the index came out to be -4.6B indeed. This is definitely a better outcome from the previous month, though it is worse than the forecast.

German ZEW Economic Sentiment, 10:00 a.m. GMT. German Zentrum for Europaische Wirtschaftsforschung Economic Sentiment. The index is a major indicator of economic health due to the investors and analysts’ changes in their sentiment about the virtue of their jobs. This is a good signal of a future economic activity. The index has shown a tendency of a continuous fall since May this year, and is predicted to drop once more this time – from 21.2 to 20.9. This would be a quite insignificant drop, and hopefully after it, the index will start to grow again.

ZEW Economic Sentiment, 10:00 a.m. GMT. The index is similar to the above one, except the above has a larger impact. The only growth it marked this year was in February, and since then it’s been dropping every month. This month, again, it should score a small drop from 10.7 to 10.6.

Thursday

German PPI m/m, 7:00 a.m. GMT. German Producer Price Index measures the change in the price of goods sold by manufacturers. The index is expected to drop from 0.6% to 0.2% this month.

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