Monday, 26 October 2009

Fundamental News for the Euro vs Dollar

Although there is a detailed analysis of the fundamental news for this pair on the main euro to dollar site today traders should focus on the German ZEW Sentiment Index, a diffusion index based on a survey of German institutional investors and analysts. In fact the survey asks around 350 German institutional investors and analysts to rate a 6 month eonomic outlook for Germany. It is considered a leading indicator of economic health as the participants are considered highly qualified by virtue of their job, and changes in their sentiment can be an early signal of future economic activity. If the actual is better than forecast then we can expect the Euro to benefit accordingly.

My trading suggestion for today is to wait for the release of the German ZEW and if, as expected, it comes in better than expected to look to profit from an upturn in the Euro.

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