Euro declined after disappointing data and recovered sharply in the Asian session on speculations that ECB considers hawkish actions. Eurozone’s CPI will be strongly eyed today. U.S. dollar was back from holidays and broadly lower due to the mixed data came out. GBP/USD is traded at the same levels for the fourth day in a row.
Euro Dropped and Recovered as ECB Considers Hawkish Moves
The euro dropped against most of the G10 currencies during the European session on Tuesday, however, it rebounded strongly and recovered its losses during the U.S. session. The single currency managed to end Tuesday and early Wednesday positive against all its nine most-traded counterparts, with the only exception the New Zealand dollar.
The slowdown in the morning session caused from the downbeat sentiment indicators released and the soft flash German CPI figures. All the sentiment indicators in sectors of services, business, economy, industrial and consumer confidence slipped in May, falling short of forecasts and below their previous prints...
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