EUR Sees Mixed Results vs. the Majors
Posted on 14. Dec, 2009 by admin in Daily Euro Analysis, Euro Currency, Euro Currency News
The Euro underwent an extremely volatile session during last week’s trading. The Euro continued to weaken against the Dollar, and the EUR/USD pair dropped below the 1.4600 level. However the Euro saw mixed results against the Yen and the Pound.
The Euro’s volatile behavior seems to be a direct result of the mixed news coming out of the Euro-Zone’s leading economies. On the one hand, German Factory Orders dropped by 2.1% in October, and the French Trade Balance failed to reach expectations for a -2.3B result, instead coming in at -4.4B. On the other hand, the German Trade Balance rose to a 12.9B surplus in October. In addition, the German Final Consumer Price Index dropped by 0.1% in November, much better than expected. According to both of these indicators, the German economy is recovering nicely.
As for the week ahead, many interesting publications are expected from the Euro-Zone. The most significant publication appears to be the German ZEW Economic Sentiment survey on Tuesday. Traders should follow this survey, as a better than expected end result could correct some of the Euro’s losses against the Dollar from the past two weeks.
