Eurozone current account higher in May
Well, some of the trade data in Europe is certainly looking a touch better, and this morning's current account for May has risen from Eur 20bln to Eur 29bln. Even so, the outlook on Europe remains downbeat and will remain so as long as the global economy continues to stumble. Even so, a weaker currency will have some positive effects on trade as price competition is working in Europe's favour for now.
No response from the EUR pairs, however, and we have come to expect this in recent times. Only the PMI data seems to be having an impact these days, but with the ECB ready to add fresh stimulus, it seems there is little more than the data can tell us.
For today, we watch the 1.1240-50 area in EUR/USD, while 1.1280-85 was strong resistance as we saw last night. We have the ECB meeting next week, so we expect the market would be happy to continue selling rallies in the near term, so we are not anticipating any more fireworks any time soon - unless we get more Fed speak similar to last night from the Fed's Williams!