EUR/USD – Euro Stems Sharp Losses
After last week's sharp losses, EUR/USD has leveled off as we begin a new trading week. On Thursday, the markets reacted negatively to comments by ECB head Mario Draghi, who warned that the high value of the euro was a risk to growth in the Eurozone. US Trade Balance numbers looked good, as the deficit narrowed significantly. On Monday, French Industrial Production declined, but managed to beat the estimate. Today's highlight is the Eurogroup meeting in Brussels. The euro is currently testing the 1.34 line.
In January, the euro rallied following positive remarks by ECB head Mario Draghi about the Eurozone economy. Speaking at the ECB's press conference last week, Draghi once again lit a fire under the currency, only this time in the opposite direction. Draghi warned that the high-flying euro was affecting prices and economic growth in the Eurozone. He stated that the exchange rate was not a policy target, but the ECB would “closely monitor money market developments”....
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