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15 May 2013
Forex Flash: EUR/USD at lows amidst weakening data – Investec
FXstreet.com (Barcelona) - This week continues to be all about the dollar as the greenback has risen to a 10 month high on a trade-weighted basis. In contrast to the grey and rainy streets of London, the U.S. economy appears to be basking in a healthy sunny glow right now and noise around the reduction of fiscal stimulus appears to be growing louder and louder Stateside.
Indeed, “the EUR/USD has hit 6 week lows this morning and has now dipped into the 1.2800s driven by the poor German ZEW data yesterday, which suggested that the German economy is not necessarily in the rude state of health that is often assumed.” suggests Lee McDarby, Corporate Treasury at Investec. This morning aw the release of advance estimates of GDP for many of the Euro-zone countries with Germany’s GDP already having slightly disappointed expectations at +0.1% versus consensus of +0.3%.
Indeed, “the EUR/USD has hit 6 week lows this morning and has now dipped into the 1.2800s driven by the poor German ZEW data yesterday, which suggested that the German economy is not necessarily in the rude state of health that is often assumed.” suggests Lee McDarby, Corporate Treasury at Investec. This morning aw the release of advance estimates of GDP for many of the Euro-zone countries with Germany’s GDP already having slightly disappointed expectations at +0.1% versus consensus of +0.3%.