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Fundamental outlook for the Euro: Bearish
Euro short position hits second target, aiming for 1.26 Next
Speculative Sentiment proposes € Fresh Lows in the case
It was not long back for the euro on the defensive in the first week of 2012, as traders find back from vacation, the currency bloc's debt crisis will be exacerbated unresolved and probably, as the Member States on a large part of the refinancing move expiring debt, about € 150 billion, of which just coming due in the first quarter. In fact, the first catalyst for the next leg of the sell - framed a disturbing French sell bonds, where yields of the country in 2021 and 2041 paper higher, while bid-to-cover ratio fell compared to an auction of similar paper December - was relatively mild, all things considered. Nevertheless, the single currency in the week to the lowest level since September 2010 against the U.S. dollar.
Read more: Euro Selling Accelerates as Debt Crisis Fears Continue to Grow
U.S. Dollar Surges on non-farm payrolls, Europe - it can continue to rally?
Fundamental outlook for the U.S. Dollar: Neutral
U.S. Dollar Rallies View as non-agricultural payrolls economy added 200k jobs
Could encourage potential for S & P 500 top U.S. Dollar strength
Clear risk of U.S. dollar pullback grows as extreme mood
The U.S. dollar (ticker: U.S. dollars) rose against the euro and other major partners, fueled by worsening the euro-zone tension and unexpectedly strong U.S. economic data. The domestic labor market unexpectedly added 200k jobs through the month of December, sending the unemployment rate to fresh multi-year lows and inspiring confidence in U.S. economic growth. Momentum favors further greenback strength, but extremely one-sided trader sentiment has warned that every euro / dollar corrections could in another week full of intense major event risk.
Fundamental Forecast for Australian Dollar: Bearish
U.S. Dollar Rally Gains Momentum as Treasuries Climb Aussie severity
Fresh scalps for 2012 - Australian Dollar Short
Australian dollar break Expected
The Australian dollar was one of the top performer against the dollar this week after the kiwi, with a margin of only 0.17%. The first sessions of 2012 suggested that the markets were ready to begin the year on a firm footing, as the dollar came under considerable pressure and risk-weighted assets rose along with the Aussie. But through the Christmas holiday, it became clear that European concerns, not only in the euro-zone, but in Switzerland and the United Kingdom, would be hard to come on the market sentiment for some time. Sharply with the aussie withdrawing its highs against the dollar, the world's reserve currency early signs of a decoupling of the inverse relationship with risk, as now, when a heated up faster than expected non-farm payroll report, a broad-based rally shown in the greenback. We are looking to break that relationship even further hit this year as positive U.S. data on consensus estimates.
Read more: Australian Dollar at Risk to Head Down Under in the Week Ahead
It is not unusual to hear talk about a company's management forecasts: "Our sales did not meet the projected numbers" or "we are confident in the projected economic growth and expect to surpass our goals." In the end, all financial projections, whether about the specifics of a company such as sales or predictions about the economy as a whole, are informed guesses. In this article we will look at some of the methods behind the financial forecasts and the actual process, and some of the risks that crop up when we seek to predict the future.