The Euro continued to sell-off after traders adjust their expectations of when the European Central Bank will deliver their next rate hike.
The disappearance of the words vigilance suggests that we will not see 4.25 percent rates until September at the earliest. There was no European economic data released today, but tomorrow we are expecting the German trade balance, current account and industrial production. The market is looking for very hot industrial production numbers but given the mixed factory orders report, there is a strong chance that the data could miss expectations. As for trade, if the strong Euro was going to have any impact on the economy, it would be in exports and imports. In the month of April, the EUR/USD surged from 1.3325 to an all-time high of 1.3682. Meanwhile Swiss unemployment fell to the lowest level in 4 years. The drop from 2.9 to 2.7 percent is a continual testament to the strength of the Swiss economy. The central bank will be meeting to discuss monetary policy next week and we expect interest rates to be lifted.