Daily Forex Overview - Dollar Set To Strengthen As Oil Prices Foresee Decline - Forex Forum

After yesterdays relatively calm trading session, today the economic calendar is filled with high impact data that threatens to sow large volatility into the market. From the wide range of news reports, ForexYard advises its traders to pay special attention to the U.S Existing Home Sales and Europe Flash Manufacturing PMI.

8:00 GMT: European Flash Manufacturing PMI

· This indicator reflects the level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.

· This indicator is very important as it is likely to impact the EUR

· The survey expects to show a significant improvement from the previous month, thereby boosting hopes that the rate of decline in the Euro-Zone economy is now moderating.

· The reduced contraction in manufacturing activity in June will suggest that the sector is starting to benefit from the massive de-stocking that has taken place.

14:00 GMT: U.S Existing Home Sales

· This indicator reflects the annualized number of residential buildings that were sold during the previous month, excluding new construction.

· The release of the survey typically creates a volatile trading environment.

· A survey with a result greater than the forecasted value of 4.82 could send the EUR/USD below the 1.3750 mark.

Tips on Crude Oil

· Oil dropped off nearly 4% yesterday as renewed worries over the uncertain outlook for major economies sparked a sell-off across global equity markets.

· A rebounding Dollar also put pressure on Oil as investors moved away from riskier assets and into safe-haven currencies.

· Oil will probably range between $65 and $70 for the next few days.