EUR/USD prediction jan 10 2012

forex trading outlook today - EUR/USD prediction jan 10 2012 : The EUR/USD pair was able to record some gains on Monday after the flow of upbeat fundamentals from the euro-area region, and also after Germany was able to sell bonds on a negative yield; however, after the European Central Bank announcement, which explained that European Banks’ overnight deposits at the ECB climbed again to all-time record, the pair surrendered some of the gains on fears an interbank lending freeze could hurt the financial sector and the region’s economy.

The pair was not able to recover the gains lost after the results of the German-Franco meeting, where the French president and the German Chancellor made slight progress regarding the new budget rules; however, they provided markets with nothing new and further details were not seen, therefore, the euro remained mixed after the news as markets are still waiting for details on how leaders will solve the debt crisis and how they will apply the new budget rules.

Merkel also warned that Greece will not obtain the second bailout unless leaders make progress in the rescue plan, noting that private creditors are still split over the write-downs.

Today, the pair is expected to be volatile especially with the lack of major economies from Europe and the United States; however, the focus will turn from macroeconomic data to the several auctions awaited today.

The United States will join the session at 15:00 GMT with the wholesale inventories index for November, which could have expanded by 0.5% from the previous expansion of 1.6%.

Auctions:
Netherlands will sell bonds at 09:00 GMT.
Austria, Malta and Greece will auction bonds at 10:00 GMT.
Slovenia will auction bonds at 12:00 GMT.

source http://www.fxempire.com

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