EUR/USD Daily Fundamental Analysis for June 27, 2011

By ForexMansion.com

The pessimism in the market with the end of last week on Friday slightly eased yet the EUR/USD remained under evident downside pressures.

This week, the pair starts on Monday with focus still on the debt crisis amid the lack of data today from the euro area. With the start of the week the Greek parliament will continue to discuss the new austerity measures passed by the new Cabinet last Wednesday and put to a final vote in parliament and due sometime this week and expected on June 28.

Investors will continue to speculate the outcome of the vote and choppy trading will prevail as fears will linger whether the parliament doesn't pass the package which might block the new flow of aid from the EU and IMF and prevent a new package, which will push Greece to be insolvent as soon as July!

Heavy volatility might be expected and the relief support from the EU support to Greece might prove to be short lived as the focus remains on the vote. The euro area has no major releases scheduled for the start of the week, yet the United States will take the lead on Monday.

The U.S. will commence with the income report for May at 08:30 GMT. Personal Income is expected unchanged with the previous month's gain of 0.4% while spending projected to ease to 0.1% from 0.4%. The Core PCE on the month is expected at 0.2% in line with the previous and on the year expected to rise 1.1% from 1.0%. 

Originally posted here

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