The Euro has been hit by the Italian earthquake and by weak Retail Sales, and seems lost. Which direction will it take? I see a gloomy picture. EUR/USD began the week with a neat weekend gap of nearly 100 pips. The new forex trading week sent EUR/USD above 1.35, and almost at 1.36. But this didn’t last for a long time. The earthquake in Italy wasn’t good for the Euro. EUR/USD began declining. Later during the day, European Retail showed a fall of 0.6%, double the early expectations of a fall of 0.3%. Image Credit: Sunrise Seven. Also negative PPI (-0.5%) weighed on the Euro. Although this figure was expected, the previous figure was revised downwards from -0.8% to -1.1%. So, deflation is becoming a real threat in Europe. Jean-Claude Trichet has no choice but lower interest rates lower. These figures may push him to move lower than the anticipated 0.25% to 1%. May’s rate decision may be more than a complementary step to April cut. It may go deeper, maybe to 0.75%. All in all, the dollar is losing ground around the world – optimism of fast recovery lowers fears and sends traders to higher yielding currencies. But the Euro doesn’t enjoy it. It has it’s own problems. Currently, EUR/USD is trading at 1.3364 and looks confused. It’s still looking for a direction. I believe that the direction will be down. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next Forex Daily Outlook – April 8th 2009 Yohay Elam 14 years The Euro has been hit by the Italian earthquake and by weak Retail Sales, and seems lost. Which direction will it take? I see a gloomy picture. EUR/USD began the week with a neat weekend gap of nearly 100 pips. The new forex trading week sent EUR/USD above 1.35, and almost at 1.36. But this didn't last for a long time. The earthquake in Italy wasn't good for the Euro. EUR/USD began declining. Later during the day, European Retail showed a fall of 0.6%, double the early expectations of a fall of 0.3%. Image Credit: Sunrise Seven. Also negative… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
