This time yesterday the euro was being bid up, underpinned by release of details of the global $1 trillion financial aid package. This morning EUR/USD languishes over two big figures lower, presently around 1.2740.
Director of IMF’s European department Marek Bleka didn’t do the euro bulls any favours yesterday, opining that he doesn’t consider the rescue package a long-term solution to the debt crisis. He’s right ofcourse, but what a poor sense of of timing. Makes me wonder what goes through people’s heads sometimes.
Euro zone data due today thin on the ground:
06:00 GMT: German CPI for April (final) expected -0.1% m/m, +0.1% y/y
06:00 GMT: German WPI for April expected +0.9% m/m, +5.2% y/y
Expectations further selling will met sovereign buying interest down around 1.2650. If this sell-off accelerates too much further we’ll have to consider the possibility of open aggressive ECB invention, quite possibly concerted in nature with Fed and BOJ involved.
