EUR/USD sits at 1.3408, pretty much where it closed out in North America Tuesday, with price confined to 1.3385-1.3437 range in Asia. Sentiment remains pretty much negative toward the euro given ongoing worries surrounding PIGS in general and Greece in particular. That said, it’ll be interesting to see whether the beleaguered euro can garner some support from month/quarter end flows today.
There is some speculation of positive euro flows related to month end/quarter end equity portfolio rebalancing . At the same time there is anticipation of usual month end EUR/GBP European central bank buying, related to UK payment to EU.
Also decent slug of euro zone economic data scheduled for release:
06:45 GMT: French producer prices for February, expected +0.1% m/m, +1.1% y/y
07:55 GMT: German unemployment change for March, expected 8k, rate unchanged at 8.2%
08:00 GMT: Italian producer price index for February, expected +0.2% m/m, +0.4% y/y
09:00 GMT: Euro zone unemployment for February, expected 10% from previous 9.9%
09:00 GMT: Euro zone CPI for March, expected +1.1% y/y from previous +0.9%
09:00 GMT: Italian CPI for March
10:00 GMT: Italian unemployment for February.
