EUR – Divergent Economies A Concern In E.U.

The EUR continued to lose ground against the USD on Friday as sentiment among investors displayed distinct signs of a ‘flight to quality’. While Germany continues to express the opinion that their growth forecasts are going to be met and possibly even bettered, other nations are beginning to make it clear – such as France – tougher days are ahead. There was no major economic data on Friday from the E.U., but today a host of PMI reports will be brought forth from Germany and France. The Manufacturing and Services Flash readings will be watched carefully. Tomorrow Industrial New Orders will be published for the continent and on Wednesday the German Ifo Business Climate numbers will be issued. The EUR has struggled the past two weeks as a cautious wind has started to blow. While Sovereign Debt concerns are not being expressed in the same manner they were in the early spring, fears of another economic downturn are proving cumbersome.

Written by