
Today the European trade may be more interesting. Economic Calendar is full of important events, each of that can be a catalyst to currency course movement. In spite of creeping oil price in April Germany showed high figures of export. In May the situation is fully changed. The published figure is worse enough than consensus (-3.2 against the consensus 0). As a result the single European currency slipped against the main world currencies.
In the beginning of the European session EURUSD slipped to $1.5700 after testing intraday maximum at $1.5726. Analysts talked about oil price fall, strengthening of European stocks in the markets and South Korea’s Dollar-selling for market intervention in Asian markets exerting influence on the currency pair and weighed down against the greenback.
But the Dollar extends losses as oil price rebounded after Iran testing some long and medium-range missiles. Analysts saw it might exert short-term influence on the currency market which has more anxiety about the global economic slowdown and surging inflation. In his speech European Central Bank President Jean-Claude Trichet noted intensified inflation risk.
In technical view shot-term impact factors disturb currency movement trend, but after EU rate change and Trichet’s announcement the currency pair shows a sideward movement. Daily stochastic falls near oversold zone and momentum seems neutral. The market is easy to be influenced by short-term influence factors.