The single European currency is in defensive mode, trying to limit further losses as the levels of 1.08 were already retreated yesterday.
The behavior of the exchange rate during yesterday’s day did not bring any significant surprises and generally confirmed the thoughts expressed in yesterday’s article.
The slight downward momentum continued, and indeed there was room for lower prices, but without signs of a sharp collapse.
Economic news came in close to estimates, with early US employment data showing a slight disappointment.
However, the market shrugged it off as today’s data, but especially Friday’s data on new jobs in the American economy, carry much more weight and the market remains cautious in light of these announcements.
Earlier in the day, factory orders in the German economy showed a significant drop that exceeded even the most pessimistic estimates, which once again brings to the forefront that the European economy remains fragile. Retail sales in the euro zone, due later today, are awaited with interest to see if they will confirm the negative climate or if they will be able to balance the impressions.
If there is more disappointing data for the Euro-Zone, it is likely to affect bets on the prospect of the European Central Bank cutting interest rates sooner than expected.
