In today’s forex trading roundup, the EUR/USD pair traded in the euro’s favor while the dollar slid against the Yen. The Euro rose today as traders speculated that the IMF would help with Europe’s debt crisis. Rumor has it, the ECB will loan money to the IMF to help bail out debt-ridden nations. Germany has expressly denied this rumor, but that hasn’t stopped it from gaining traction. The EUR/USD pair is currently trading at $1.3521, an increase of $0.0056.
The USD/JPY pair fell to 76.7935 Yen per $1 dollar. The dollar showed weakness across the board in the forex markets today after the New York Fed President, William Dudley, said they will do ‘everything’ they can to stimulate the economy. He also said the economy faces ‘significant downside risk.’
Here’s what traders should keep an eye on next week. As always Europe will take center stage as traders hope for good news on the handling of the debt crisis. In particular, PMI indices for November will be something to look too as an indication of how the overall EU economy is doing. The elections in Spain this weekend will also be something to watch. And finally, the upcoming deadline for the ‘supercommittee’ to get something done could add a lot of uncertainty in the markets should they not decide on how to deal with the U.S. debt.