The Euro continued to hover near its record highs today. German producer prices were the only piece of data released and they fell short of expectations. Interestingly enough, the Euro rallied on the back of the number. The central bank?s commitment to continue to raise interest rates has helped to keep the Euro steady near its record highs.
There were reports today that German Chancellor Merkel is considering introducing measures that would make it more difficult for foreign state controlled funds to invest in German companies. More specifically she is attacking the increasing number of Chinese and Russians that are interested in German companies. This measure of protectionism is a sharp shift away from the comments she made at the Davos conference in the beginning of the year. Back then, she warned of the perils of protectionism and urged greater dialogue between developed and developing nations. Meanwhile over in Switzerland, the Franc broke down after the release of a much weaker than expected Swiss ZEW survey. The trade surplus was higher, but the fact that analysts turned pessimistic on the Swiss economy despite strong economic data was worrisome.