Euro awaits Bundesbank report
The euro is currently trading at $1.3382. This morning’s update from the Bundesbank should be interesting given that the German economy contracted in the second quarter of this year. The problems of Greece are well known, but when the powerhouse that is the eurozone registers negative growth, that is when traders sit up and takes notice. Germany holds a lot of sway in the currency union and Bundesbank often gets what it wants.
The report is due out 11am (London time) and any suggestion that the European Central Bank might introduce additional monetary easing could push the euro to $1.3340. The currency is encountering resistance at $1.3415.