EUR/USD down again overnight in Asia, presently at 1.2945 from a North American close Tuesday up around 1.2990. Risk aversion is dominating at the present time.
Myriad of concerns. Obviously worries over PIGS (or PIIGS) top the list. You can add concerns over Chinese tightening/slowdown, Goldman saga, BP rig disaster. Australian resource tax, Icelandic volcanic ash (still spewing away seemingly.) Sure I’ve forgotten other factors, still a bit early. Potent cocktail.
The word “contagion” is being oft-used. Infact here is the first headline I saw when I turned on my reuters this morning:
Finland FinMin sees risk that Greece’s problems could spread to other countries. Oh eh.
Hearimg talk of fairly decent buy orders down at 1.2900/20. Will they provide durable support? Take a brave person to bet too heavily on that outcome, but they’re there anyways.
Eurozone economic data due today:
07:45 GMT: Italian services PMI for April expected 56.0 from 55.3
07;50 GMT: French services PMI for April (final) expected 57.8
07:55 GMT: German services PMI for April (final) expected 55.0
08:00 GMT: Euro zone services PMI for April (final) expected 57.3
09:00 GMT: Euro zone retail sales for March expected -0.5% m/m, +0.1% y/y
