Euro Steady After Yesterday’s Drop

The euro was steady today and even attempted to rally versus the US dollar. The currency sank yesterday against safe currencies after poor macroeconomic data from China and the United States spurred risk aversion on the Forex market.

The slower-than-expected China’s growth was a major event at the start of this week, driving the FX market into risk-off mode. The USA did not help either with the fall of the Empire State Manufacturing Index, which was also a surprise to market participants. The trading environment favored safe currencies, driving the euro down.

The news from Europe itself was not that bad. Greece proceeds with its plans to reduce the debt burden. Cyprus increased amount of money that is allowed to be transferred between banks.

EUR/USD was at 1.3045 as of 00:52 GMT today after dropping from 1.3113 to 1.3032 yesterday. EUR/JPY went up a little to 126.40 following yesterday’s slump from 128.75 to 126.04.

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