EUR/USD Could Tumble to 1.4700 on Economic Data

[GFT]

U.S. dollar could gain the upper hand in forex tradingRight now the U.S. dollar is making headway in forex trading on the currency market as things get a little jittery for investors. Concerns about the economic recovery were raised with yesterday's surprisingly unpleasant consumer confidence numbers.

As a result, forex traders are turning to the safety of the dollar and easing away from the risk trade. As things are going, it is possible that the EUR/USD currency pair could fall. GFT's Boris Schlossberg explains the situation in :

Yesterday’s shocker of US consumer confidence number continues to weigh on the currency market with many participants now questioning the strength of the economic rebound. That’s why today’s US Durable Goods report could prove pivotal to this week’s direction of trade. The market anticipates a jump to 0.6% in the core number from -0.3% the month prior. However, if the data once again misses and prints flat or negative on the month risk aversion flows are likely to accelerate with EUR/USD possibly drifting towards 1.4700 by the end of North American session.

If more unpleasant economic data makes an appearance, the inadequate economic recovery will be fully exposed and the risk trade could suffer a serious blow.


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