Euro is clinging to some of its gains from the end of last week, even after the latest news on German factory orders. Even though the 19-nation currency seems to be holding on for now, there are some downside risks that could impact the euro in the coming days.
Euro is still logging gains against its major counterparts, although there are some signs that the 19-nation currency could slip soon. The latest news out of Germany is that factory orders dropped in April. Orders dropped 2.0 per cent month over month in April. Concerns about an industrial slowdown in Germany are weighing on the euro as concerns about what’s next for the eurozone are in the spotlight.
While ECB President Mario Draghi was somewhat optimistic about the eurozone’s gradual recovery in the coming months, there are still some downside risks. One of the most immediate risks is the concern about activity taking place during the Euro 2106 Finals. A man has been arrested with a plan for attacks, and there might be strikes.
At 14:50 GMT EUR/USD is slightly higher, moving up to 1.1363 from the open at 1.1356. EUR/GBP is up to 0.7857 from the open at 0.7849. EUR/JPY is also moving higher, gaining to 121.61 from the open at 121.03.
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