The EUR has consolidated in range against the USD the past week as it has shown little inclination to give back its gains. Greece continues to spark interest among investors who still hear plenty of warnings that its austerity measures will fail and that its growth projections are too rosy. The prospects of austerity measures across Europe continue to spark unrest and this has been most evident in France with large general strikes pervading. However in the midst of questions regarding weak growth and tough spending cuts, the EUR has been able to gain against the greenback. Industrial New Orders were published for Europe yesterday and they beat estimates with a result of 5.3, beating the expected gain of 2.1%. Today the GfK German Consumer Climate reading is on the schedule and the projected mark is 5.2. The EUR has found considerable backing the past month and a half, but the question on investor minds is where ‘fair value’ actually should be. This may explain why the EUR has found some consolidation the past week.
Written by bforex.com