Euro slips overnight
The euro is trading at $1.2658. Trading volumes and market volatility are expected to be low as the US is celebrating Columbus Day. It is also going to be quiet in terms of economic announcements from the eurozone. The German economy has been performing particularly poorly recently and when the powerhouse of Europe is struggling, you know there is a problem. Trades are looking ahead to the German ZEW report, which measures economic sentient, and analysts are expecting a reading of 0.2. This compares with September’s reading of 6.9.
I don’t foresee the euro breaking $1.27 in the near future and if traders continue to lose confidence in Germany ahead of the ZEW report the euro could drift to $1.2605.