EUR/USD

Discussion in 'Forex' started by nycfxproptrader, Apr 20, 2004.

  1. It is debatable whether the EUR would still have avoided a
    fresh collapse vs the dollar even without the release of a very poor German ZEW report. The dollar has been on a mission from the off and has made steady gains across the board Tuesday. The European session got underway with the release of
    German producer prices and a doubling of the 0.3% consensus forecast. It is a sensitive time for the Euro-Zone economy and any indication that inflation could negate the chances of an economic boosting rate cut will dampen market sentiment
    towards the EUR. So, a bad start for EUR/USD and the pain intensified with the release of the ZEW, which fell to 49.7 in April from 57.6 in March. Expectations had been for a number around 56.00. [EUR/USD] slumped to 1.1900 after the release and has struggled make any headway since. With no US data to upset the order of things the market looks set to drift the EUR lower after European hours. Greenspan is a factor but it is felt that tomorrow"s congress testimony will deliver more in the way of policy hints. The next support point for the EUR
    comes in at 1.1865-70, lows from April 14.