The EUR gained against the USD again and it did so even as the broad Retail Sales for the continent turned in a result of minus -0.4%, falling short of the anticipated gain of 0.2%. Today the Final GDP numbers will come from Europe and are estimated to be 1.0%. German Factory Orders are also on the calendar and carry a forecasted gain of 0.9%. The anticipated numbers actually indicate rather lackluster growth from Europe, but for the moment in regards to the EUR this is having little effect. The Single Currency continues to trade under the onus of a strong dollar centric venue and until there is a paradigm shift in sentiment the EUR may continue to foster backing. The question is – how long can the EUR continue to strengthen even as it has severe concerns lurking regarding austerity, and how will this influence Europe’s growth prospects? Short term versus long term philosophies must be carefully gauged.
Written by bforex.com