European Interest Rates on Tap Today

By Greg Holden,

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Rising market optimism seems to have driven a number of the higher-yielding, European currencies upward in value this week. The US dollar, on the other hand, has experienced a steady free-fall against the majority of its primary currency counterparts as investors move away from safe-haven assets.

The rollercoaster ride of Middle East turmoil being experienced right now has caused a level of added volatility to the market. Yesterday's rise in agitation from fresh clashes between pro- and anti-Mubarak groups dragged downward on the resurgent EUR in late trading, helping the greenback recover a small amount of its recent losses.

Here is a roundup of today's leading events:

12:45 GMT: EUR - Minimum Bid Rate

The euro zone will be publishing its latest decision about its short-term interest rates. These figures have a direct correlation with currency values and thus tend to add volatility to the mid-European trading session. Rates are expected to be held steady at 1.00%, but the subsequent announcement by the European Central Bank (ECB) in its press conference at 13:30 GMT may inject a second round of volatility if its statements hint at future changes to monetary policy.

15:00 GMT: USD - ISM Non-Manufacturing PMI

The Institute of Supply Management ( ISM ) is releasing its monthly Purchasing Managers' Index which measures business conditions among 400 surveyed manufacturers nationwide. Today's expectations are for a reading slightly higher than the previous months, which could continue to boost risk appetite in this week's trading, driving the USD lower around mid-day.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Forex and Currencies
Referenced Stocks: ISM





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