The EUR gained on Thursday against the USD and the question that must be asked – is why? Only Final Manufacturing PMI data was released yesterday and it proved lackluster. However, Spanish bonds found a good result, although there are questions about who the biggest buyer in this auction was. In other words while the EUR enjoyed a nice short term run there remains significant hurdles for the Single Currency to jump. There will be little in the way of economic data from Europe today with only the broad Unemployment Rate ready to be presented. In essence what is taking place is a beauty pageant among unworthy participants among the major currencies and the judges must decide on a winner that consists of the least flaws. The European Union has done little to ease concerns regarding banking exposure to the Sovereign Debt crisis and although the ECB says it is prepared to help troubled European nations – doubters remain a strong part of the trading mix. Going into this final day of trading, the EUR may find itself under a dollar centric flare because of the jobless data coming from the States. Traders who have the stomach to test the ranges of the EUR could find opportunity today, but they may have to be nimble.
Written by bforex.com
