Currency Note Euro

Euro slips slowly

By Ricky Bean June 11th, 2015

On Wednesday, German 10-year bond yields rose above 1% for the first time since September 2014, usually an important psychological number and a mark of strength for the euro. However, as always with recent remarks by European Central Bank (ECB) President Mario Draghi, there has been a negative impact. On Wednesday he said that markets should get used to fluctuations, and that this will continue to weigh on the single currency. German yields have been constantly rising in the last few weeks, with most believing that this is down to the large stimulus program from the ECB, as well as measures by the central bank to avoid the risk of deflation.

Also on Wednesday we continued to see exasperation from Greece’s lenders as the lack of detail in Greece’s alternative proposals seems to be making it very difficult to have sensible discussions. The saga continues.
Today we have the French Consumer Price Index (CPI) and French non-farm payroll data releases, with the forecasted figure for CPI to improve marginally from 0.1% to 0.2%.