Will USD Still Plummet in Coming Week?

The US Existing Home Sales and Bernanke comments forced a large USD sell off last week. However, the Home Sale improvement was not such a positive sign of recovery because it hinged on foreclosures and rising inventories.

Although the Euro bounced against the USD from 1.4050 to 1350 last week, continual improvement depends on an global increase for risk appetite.

The low-yielding Yen suffered against all currencies except the USD and remains at the mercy of global risk sentiment.

The British Pound also will respond mainly to major US Fundamental data releases in the coming week.

High Impact Fundamental Data Releases in coming week

Tuesday August 25th

10.00am USD Consumer Confidence Forecast: 48.0

This is an assessment of consumer sentiment regarding business conditions, employment and personal income and is generally linked with consumer spending.

Thursday August 27th

2.00am EURO Germany Consumer Price Index figures Forecast: -0.2%, -0.4%

This price index assesses changes in the cost of living by tracking changes in the price of a basket of goods and services that a typical German household might purchase.

8.30am USD Gross Domestic Product figures Forecasts: -1.4%, 0.2%

These extremely important figures gauge the overall output (goods & services) of the U.S. economy and is the most comprehensive overall measure of economic output providing key insights into the driving forces of the economy.

Friday

4.30am GBP GDP Figures Forecasts: -0.8%, -5.6%

These figures are the equivalent to the US ones released on Thursday. However, changes in the British ones tend to impact only GBP associated currency pairs whereas the US ones affect almost all currency pairs.

10.00am USD University of Michigan Confidence Forecast: 64.5

Assesses consumer confidence regarding personal finances, business conditions and purchasing power based on hundreds of telephone surveys and is noted for its quick turnaround.

Watch out for my daily posts that will provide updates on the above plus details of other important fundamental releases.