No respite for EUR/USD overnight, presently down at 1.2620 from a North American close Tuesday up around 1.2660. As we saw yesterday hedge funds continue to sell the beleaguered euro with some gusto on any appreciable rallies.
Famed investor Jim Rogers, in a Bloomberg interview, has opined that the weekend rescue package means that “they’ve given up on the euro, they don’t particularly care if they have a sound currency, you have all these countries spending money they don’t have and its now going to continue.”
Meanwhile Nouriel Roubini, also in a Bloomberg interview, has said Greece and other “laggards” in the euro area may be forced to abandon the euro in the next few years to help spur their economies. Oh-eh.
Fair amount of data today:
06:00 GMT German Q1 GDP (prov) expected flat q/q, +1.2% y/y
06:45 GMT: French CPI for April expected +0.3% m/m, +1.8% y/y
06:45 GMT: French Q1 GDP (prov) expected +0.3%, +1.4% y/y
06:45 GMT: French current account for March
06:45 GMT: French industrial investments survey for May
08:00 GMT: Italian Q1 GDP (prov) expected +0.3% q/q, +0.1% y/y
09:00 GMT: Euro zone Q1 GDP expected +0.1% q/q, +0.5% y/y
09:00 GMT: Euro zone industrial production for March expected +0.1% y/y, +6.5% y/y
Shouldn’t need to go too much lower in EUR/USD to start hearing reports of renewed Asian sovereign buying. China widely expected to aggressively defend well-touted 1.25-1.35 dnt interest.
