The EUR continued sputter on Wednesday as it traded to the lower part of its range versus the USD. The Single Currency however continues to hold itself above the lowest realms of its recent downward slope and the question is if this can continue. CPI Flash Estimates from the E.U. underscored that deflation – not inflation – is the real danger. Today Final Manufacturing PMI figures will be presented and the result is expected to match the previous reading of 55.6. Also, German Retail Sales numbers will be brought and are expecting a slight gain. Spain was again in the news yesterday, this time as Moody’s said it is considering a downgrade of the Spanish debt. An interesting argument is developing between Europe and the United States regarding ‘austerity versus stimulus’, this as Europe has basically been forced into a cost cutting mechanism and the States continues to express its belief in spending. The prospects for growth are not particularly good for either economic giant presently in many investor eyes and traders are left to sift through the data. The EUR has performed in a poor trend for months and going into the final two days of trading this week it will likely face a test regarding risk appetite.
Written by bforex.com
