The shared currency of the European Union slipped against the U.S. dollar on Wednesday as the largest economy in the 17-nation bloc is set to release data noting business confidence is waning, according to Bloomberg.
Published by the Ifo Institute in Germany, the business climate index is forecast to plunge to 106.2 in April after having checked in at 106.7 during the month prior, according to the median estimate of Bloomberg economists. The latest of poor regional economic data augments the likelihood of the European Central Bank intervening.
"The euro is susceptible to downward pressure," foreign-exchange and money trading head Masato Yanagiya with Sumitomo Mitsui Banking Corp. in New York told the news source on Wednesday. "As economic data from Europe are very bad, expectations of a rate cut by the ECB are rising gradually."
The central bank of Germany this week noted its economic recovery is likely to be delayed by some time.
Reuters reports an air of optimism is among Italy, the euro bloc's third-largest economy, as the nation toils toward sifting through political tumult that has plagued the nation since its election.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.