Euro-zone Industrial Production is to be released in about 10 hours which is expected to show contraction in May. It is when there is still concern about the future of the Freddie and Fannie. One hour ago, US Treasury announced a possible plan to rescue the two firms; however it is not very clear to me that whether it could calm the markets.
In this situation I decided to start the week. I have sold EURUSD at 1.5941 and 1.5958 in the early trading hours. Also I am short on euro against sterling at 0.8013 which is a position on today's UK Producer Price Index. It is possible to hold both positions until Tuesday when the German ZEW survey could emphasize on the weak side of Euro economy.
First reactions to the Treasury's statement about the rescue plan have been positive so far but it is subject to high level of uncertainty.
In this situation I decided to start the week. I have sold EURUSD at 1.5941 and 1.5958 in the early trading hours. Also I am short on euro against sterling at 0.8013 which is a position on today's UK Producer Price Index. It is possible to hold both positions until Tuesday when the German ZEW survey could emphasize on the weak side of Euro economy.
First reactions to the Treasury's statement about the rescue plan have been positive so far but it is subject to high level of uncertainty.
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