Monday, 7 Jun 2010

Euro Sees Volatile Trading Today

After the sharp freefall which took place since Thursday last week, the Euro managed to halt the drop today. When the market reopened yesterday, the Euro slid to a 4-year low against the Dollar and to a 9-year low against the Yen. Currently the Euro is managing to recover some of its losses.

The catalyst for the Euro's correction today was the German Factory Orders report, which was released at 06:00 GMT. The report showed that German Factory Orders unexpectedly rose by 2.8%, beating expectations for a 0.1% decline. The better-than-expected data has given investors the opportunity to close short position on the Euro, and as a result halted the Euro's bearish trend.

Looking ahead to tomorrow, the most significant economic publication looks to be the German Industrial Production. Analysts are forecasting that German Industrial Production rose by 0.7% during April. If the end result will beat forecasts once again, the Euro might prolong its recovery.