Week in FX Europe – German IFO and Fed Mixed Signals Boost EUR

The EUR/USD had a roller coaster ride. Last week Fed member comments regarding a near end of the US QE program sapped strength away from the EUR. This week Fed Chairman Ben Bernanke warned against ending the program too soon, as it might hurt more than help. The comments and a surprisingly strong German IFO Business Climate figure drove the EUR/USD above the 1.29 level.

The GBP/USD continues to struggle even as employment numbers were positive in the UK. The pound sterling (GBP) continues trending lower toward US$1.50 and recent British retail sales figures are the culprit. Though analysts had expected little to no decline, Great Britain’s April retail sales were 1.3% lower than the previous month. As a result, the GBP continued to lose ground versus the greenback

Monday is a holiday in the US and the UK and next week there is are German and European inflation releases as well as GDP releases in the US and Canada.

• Germany Reports Sluggish Growth
• EUR/JPY at 131 Before German Data
• Bullard Recommends the ECB Follow the US Fed Policy
• UK Mortgages Rise to 4 Year High
• UK Inflation Drops in April
• ECB President Sees Encouraging Signs in UK Economy
• ECB’s Draghi Says Buying Government Bonds is Helping
• ECB Weidmann Monetary Policy cannot Solve the Crisis
• UK First Quarter Growth Confirmed
• BoE Minutes Show King Lost Stimulus Increase Vote 3 – 6
• IMF Warns UK Still a Long Way From Recovery
• BoC Carney Recommends Bold Japanese Style Actions for ECB
• BoE Outgoing Governor Claims UK in Only Modest Recovery
• Santander Exec: Positive Outlook for Spain

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