Vasilis Tsaprounis
Independent Analyst
The single European currency is in defensive mode trying to limit further losses as already yesterday the levels of 1,08 have retreated.
The behavior of the exchange rate during yesterday's day did not bring any significant surprise and in general confirmed the thoughts as expressed in yesterday's article.
The mild downward momentum continued, and indeed there was room for lower prices, but without signs of a sharp collapse.
Economic news reported was close to estimates with early US jobs data showing a slight disappointment.
However the market showed a disregard, as today's data but above all, Friday's data on new jobs in the American economy have much more weight and the market remains cautious in view of these announcements.
A little earlier the factory orders in the German economy showed a significant drop which exceeded even the most pessimistic estimates, something that brings back to the fore that the European economy remains fragile. The retail sales in the Eurozone that we are expecting later today are awaited with interest as to whether they will confirm the negative climate or will be able to balance the impressions.
If there is any more disappointing data for the eurozone on the table this is expected to affect bets on the prospect of the European Central Bank cutting key interest rates earlier than expected.
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