The euro is trading at $1.3917, down 0.07% on the day after Germany revealed a 2.8% drop in factory orders in March. This not only compares to a 0.9% rise in February but also missed the expectations of a 0.3% increase. France also revealed weak economic data; industrial production dropped by 0.7% in March, after consensus for an increase of 0.3%.
The euro is still above the $1.39 level which is a positive sign, considering. We are not expecting any more major economic announcements from the eurozone today, though in the US Janet Yellen of the Federal Reserve will testify in front of Congress at 3pm (London time).
Ms Yellen’s stance has been on the dovish side lately. If she reiterates the need for the stimulus package the euro could retest its recent seven-week high of $1.3951. If the governor takes a more hawkish tone, it could target the 50-day moving average of $1.3826.