Euro is a Good Buy
Services activity in most of the European nations expanded more than expected for April, leading the Euro to move marginally higher against the greenback yesterday. Furthermore, the Euro zone monthly retail sales climbed for March, thus indicating that recovery in the currency bloc is slowly gaining traction. However, the euro is languishing at the lower end of recent levels and remains a good buy.
The single currency is trading in a tight range against both the pound and the US Dollar this morning as risk appetite among investors remained subdued due to heightening geopolitical tensions in Ukraine, which has raised the possibility of a civil war. With no major macroeconomic data across Europe today, investors will keep a tab on Janet Yellen’s testimony for further direction. Additionally, market participants will remain on the sidelines ahead of the ECB monetary policy outcome tomorrow, especially after the OECD urged the central bank to act soon to combat low inflation prevailing in the region.
Key Economic Events
UK Markit Services PMI UK Official Reserves US Trade Balance US IBD/TIPP Economic Optimism US FOMC Member Stein Speech Eurozone Markit Services PMI Eurozone Markit Composite PMI Eurozone Retail Sales Eurozone EcoFin Meeting Spain Unemployment Change