Tuesday, 24 May 2011

Euro Edges Higher Following German Data

Positive German data gave the euro a brief respite today against its main currency pairs. The 17-nation single currency had been falling steadily over the last several days, as the spreading euro-zone debt crisis has caused investors to abandon the currency. Currently, the EUR/USD is trading right around the 1.4120 level, up close to 70 pips from this morning. The EUR/JPY has gone up around 80 pips in the same time period, and is currently holding steady around the 115.60 level.

Turning to tomorrow, traders will want to pay attention to the US Core Durable Goods Orders figure, set to be released at 12:30 GMT. Initial forecasts are calling for a steep drop over last month's number. If true, the USD may drop further against the euro in afternoon trading. At the same time, traders will want to watch out for any updates regarding the euro-zone debt crisis, as they are likely to have a significant impact on the marketplace.