Single Currency Weakened

Forex News

The single currency has dropped. At this point, EUR/USD is trading under the 1.14 line. German trade deficit expanded to 20.3b euros. The Eurozone Sentix Investor Confidence rose to 28.4. US Nonfarm Payrolls increased to 222K in prior month. Wage growth were unchanged at 0.2%. Currently, fed fund futures are pricing in 47% of December rate hike, comparing to last week’s 50%. First quarter numbers were soft, and experts assume that Q2 won’t bring any progress. If that happens, Fed are likely to cancel the December move and by that burden the greenback. European Central Bank started discussing a policy tightening as the economic recovery is boosting and inflation is growing. On July 20, the Bank will announce its decision. So far, ECB avoids any loud statements in order to stabilize euro.