EUR/USD Rebounds ahead of German ZEW Data
February 16th, 2010 Posted in Euro-Zone
The EUR edged up against the Yen and U.S Dollar Tuesday as slight gains in Tokyo share prices prompted investors to buy back the risk-sensitive currency. The EUR was up 0.5% at $1.3666 as EU urged Athens to make a greater effort to deal with its fiscal problems, prompting short-term traders to trim their short positions.
However, traders have said that there is an expectation for the single currency to fall later in the day, as many expect more bad news from Europe. The German ZEW business sentiment survey for February due at 10:00 GMT is expected to show the business expectations index dropping to 42.5 from 47.2 in January, according to preliminary expectations.
The European currency may fall further against the Dollar on speculation that fiscal trouble in Greece could be just the tip of the iceberg, with bigger European economies like Spain also facing pressure to fix their tattered balance sheets. The single currency may trade at $1.3550 as Greece debt problems and weak economic activity continue to dominate the EUR situation.
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