Today there was a strong declines from 1.1349 to 1.1134 level. The dollar strengthened against the euro due to the problems of Greece, which has the end of June to pay back 1.6 billion euros to its creditors. Greece every moment presents new proposals, however, between the EU and Greece comes the question to the large discrepancies. It is worth mentioning that even better data from Europe in the morning did not help the common currency. The dollar also was supported by better data from the USA.
The economic calendar for Wednesday:
7:30 EUR French GDP
10:00 EUR Business Expectations in Germany
10:00 EUR Current analysis of the situation in Germany
10:00 EUR Ifo index of business sentiment in Germany
14:30 USD GDP (q / q) (Q1)
14:30 USD GDP deflator (q / q) (Q1)
18:00 EUR Total number of unemployed in France
20:00 EUR Euro Group meeting
Tomorrow we will know the Ifo index in Germany and the US GDP. In both cases, we can count on stronger traffic on the currency pair. Certainly most of the market will follow US data that will give an answer about the real situation in the economy in the United States. A better reading will support the dollar.
At the end of the day we will also find information that will flow after the meeting of the Eurogroup. I think that there will be any important decisions, and the information we get will leave a lot of answers. In other cases, we may expect a panic moves. In the event of bankruptcy of Greece we can expect strong sales of Euro .
The forecast for Wednesday:
Today there was to knock down with a growth, which led to strong declines. At the moment the currency pair stopped at support levels are between 1,1125-1,1160. As a result, a fairly large sell out, we can count on a correction towards 1.12 and 1.1240. After the correction should occur in the vicinity of subsequent declines 1.1080.
You should also look at . Taking into account data from Europe and the USA, remember that good data from Europe may obscure information or rumors on Greece. Analyzing the currency pair EUR / USD should be aware that data from the US have a stronger aspect.
Note: The currency pair is still under pressure due to uncertainty in negotiations between Greece and the EU.