09, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

German industrial orders showed a plus 4 percent for the month. In the U.S., factory orders showed a negative growth of 4 percent during the month.

Stock index Dow Jones Industrial Average for the first time closed above 15,000 level on Tuesday, having conquered another peak in the course of its four-year growth.

If last week's prospects for the euro began to deteriorate, this week they look even bleaker.

The disappointing economic data from the eurozone increased rumors of further monetary policy easing by the European Central Bank.

China's efforts to reduce the flow of "hot money" probably means less diversification of dollar reserves in the single European currency.

A reminder that the ECB may cut interest rates again and even transfer the deposit rate into a negative territory, was made by Mario Draghi. He said that the ECB was ready again to soften its monetary policy if weak data would continue to come out in the next few weeks. Last week, Draghi made a similar warning.

ECB Monthly Bulletin will be released today. The monthly report released in April described the prospects of the ECB before the meeting at the beginning of this month. The main points were that the central bank is "ready to act" to boost economic recession in the eurozone. A gradual recovery is expected in the second half of this year, but is at risk.