Euro hovering above $1.37
The euro is now trading at $1.3719, after pulling back some of the ground lost after France revealed a drop in inflation in April. Mario Draghi is finally coming around to the idea that he may need to intervene by loosening monetary policy. As Alastair McCaig stated, the euro is suffering from his comments last week, and now that the Deutsche Bundesbank has suggested it would support monetary easing it now seems as though the eurozone central banks are prepping the market for the inevitable.
A move below the important $1.37 mark could put us on track to hit the 200-day moving average of $1.3682. Tomorrow’s eurozone CPI and flash GDP will give us a clearer picture of the region.