Euro traders await ZEW report
Greece’s ability to embark upon reform and keep to its debt commitments continues to be a topic debated around trading floors. Bond markets have not been so indecisive and the record-high yields now being attached to short- and medium-dated Greek sovereign debt are a perfect example of the risk reward principle.
Last month saw the German ZEW data confirm that the start of the European Central Bank’s quantitative easing scheme had at least increased optimism even if the regional economic data has not, as yet, seen much of an upturn. This morning currency traders will once again be monitoring this to see if this optimism can assist in dragging the eurozone’s recovery back to life.
The 50-day moving average has proven to be a barrier to higher levels in EUR/USD, and the mindset of selling into bounces continues to be the strategy of choice.