The Euro has sold off for the fourth consecutive trading day but the degree of the four day weakness pales in comparison to the typical moves that we are accustomed to seeing in the EUR/USD. Central banks like the ECB must be delighted with this lack of market volatility and as traders it has become the perfect currency to range trade.
General interest in trading the Euro has waned according to the latest FXCM Speculative Sentiment index. Economic data released this morning was mixed. Even though the unemployment rate dropped in Germany and the retail PMI improved, a big drop in French retail PMI dragged overall Eurozone activity lower. Money supply was higher than expected, highlighting the inflationary pressures that the Eurozone still faces. German retail sales and French unemployment are due for release tomorrow. Spending is expected to drop after rising strongly in the month of April. However the improvement in the labor market and the rise in the IFO consumer survey suggest that another rise is not of the question.