Euro remains within range
The euro is broadly unchanged versus the US dollar as there was little economic news from either region to force the currency pair out of its range.
The euro is trading at $1.2848, after seeing little movement overnight. In fact, as far as the eurozone is concerned, it is a quiet week in terms of economic data, so the focus will remain on the US dollar. Tomorrow, the eurozone will release the private loans and money supply data; this should be interesting given the European Central Bank cut interest rates at the beginning of the month and announced the buying of asset-backed securities (ABS). The ECB is now hoping banks will ramp up their lending which will be key to the region’s recovery.
As I stated yesterday the risk remains on the downside; if the US has strong home sales figures at 3pm (London time) the euro could target $1.28.