Euro Zone Data Clarifies ECB Rate Decision

The June Euro is expected to open higher because of a better than forecast Index of European Services and Manufacturing Report. This news is triggering a strong short-covering rally because it is sending a signal that the European Central Bank will likely hold interest rates at 1.0% at its next meeting on May 7.

The recent weakness in the Euro has been triggered by uncertainty regarding whether interest rates would fall below the 1.0% level. Today’s news seems to clarify things.

The Euro is trading higher because of a better than forecast Index of European Services and Manufacturing Report. This news is triggering a strong short-covering rally because it is sending a signal that the European Central Bank will likely hold interest rates at 1.0% at its next meeting on May 7.

The recent weakness in the Euro has been triggered by uncertainty regarding whether interest rates would fall below the 1.0% level. Today’s news seems to clarify things.