EUR/USD under pressure
Ahead of tomorrow’s important European Central Bank rate decision, Germany has posted truly awful factory orders. Expected to show growth of just 0.5%, it came in showing that German monthly factory orders had shrunk by 3.2%. EUR/USD will have seen more pressure heaped onto it keeping it below the $1.34 level.
Although a weaker euro will be welcome news for many of the export-driven economies around the eurozone, the fact that this is happening due to disappointing economic data or because it is being driven by the US is becoming an increasingly worrying trend. Once more, tomorrow’s ECB rate decision is unlikely to see a change before the targeted long-term refinancing operation has started. It is maybe unfair to judge the actions taken by the ECB, however a criticism of its timetable appears just.