Extreme pressure on the Euro followed by extreme pressure on the global economy. After last week’s disappointing NFP, the FED(US) will look for dovish measures to stimulate the economy as operation twist (program to lengthen maturities of debt on the central bank's balance sheet) comes to an end this month. Operation twist could be extended according to Federal Reserve Bank of Atlanta President Dennis Lockhart.
All eyes will be on FED Chairman Ben Bernanke with a policy-setting FOMC meeting June 19-20 to consider if more stimulus is needed after the economy added the fewest jobs in a year in May.
European economy is still in turmoil with struggling Greece and Spain highlighting the Euro's weakness. Meanwhile investors eye the key Greek election in June which will decide the flavor of the "new" Greek government.
Neal Vanderstelt - Currency Analyst
Please rate & recommend: