EUR – Dollar Centric And Tentative

The EUR struggled a bit on Tuesday losing some of its ground to the USD. The move can hardly be called earth shattering and the trading of the Single Currency and the greenback remain in a rather well versed range, but traders will keep a cautious eye on the currencies today to monitor the amount of risk appetite. German inflation data yesterday proved unimpressive and points to rather stagnate economic conditions as it produced a mixed bag with the Final CPI & WPI figures. Today will be a very quiet day of data from Europe and the EUR will continue to trade in a dollar centric manner based on risk sentiment which is generated from any fallout regarding the FOMC Statement published Tuesday. The Industrial Production statistics for Europe will be released tomorrow. The EUR has had a strong run the past month and a half as fear has subsided that the EUR was in its ‘end days’, the question for traders today will likely center on ‘fair value’ in what will be a tentative market.

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