Euro is looking for direction right now, and it seems likely that it will be all about the headlines this week. Confusion about what the ECB is planning to do — and what Germany is on board with — is hindering the euro a bit as Forex traders look for clues about what will happen next.
This week, there will be plenty of interest in the news. We’ll be seeing FOMC minutes, as well as RBA minutes. August PMI readings will be coming in for China as well as for the eurozone. All of this news is being awaited by Forex traders. But it’s not just about economic data.
Euro is looking for direction as the European Central Bank looks for direction. After reports that the ECB was looking into capping bond yields to prevent further problems in Spain and Italy, the situation is already changing. While the report gave the euro a bit of a boost, comments from German leaders about the problems associated with such a course of action dampened spirits.
Also this week, Angela Merkel and Francois Hollande will both meet with Greek PM Antonis Samaras. Already it looks as though Germany and France are split on whether or not to provide more aid to Greece. The outcome of those meetings will affect the euro’s performance as well.
At 13:39 GMT EUR/USD is down to 1.2311 from the open at 1.2352. EUR/GBP is down to 0.7846 from the open at 0.7864. EUR/JPY is down to 97.8620 from the open at 98.2820.
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