What’s Happened in the European Session?
Skerdian Meta • 2 min read
Apart from the last minute move in EUR/USD and USD/JPY, which to me looks like risk aversion, the market has been very quiet so far today. But, of course, there have been forex events happening in the meantime; so let´s have a look at them.
The economic data is almost inexistent today, with German factory orders the only kid in town. They did post a great number when they showed a 5.2% jump in December.
The Euro didn´t feel that as it´s been sliding during the entire London session. Although, that´s likely due to the ECB president, Draghi, who is supposed to appear live in a press conference any time now. We know he loves to slap the Euro down and he knows best how to do it, so I don´t blame the Euro bulls.
Speaking of press conferences, the French presidential candidate, Francoise Fillon, will be up soon as well. He looks set to fight back Marie Le Penn of the far right wing.
This very battle will be the decisive factor for the Eurozone and the Euro as well. If Le Pen wins, that´s it for the European Union. So the market is very interested in the French elections which will be held later this year.
You could as well start building long term EUR/USD long positions if you think that the Eurozone will survive. But, with what we have seen last year, anything is possible. Le Pen might win and the Euro will surely break a leg. So, it's your decision.
Moving over to the English channel, the Brexit saga never ends. Finland´s Stubb is asking Britain to come up with the Br-exit date and the price tag.
British nationalists were quick to invade all financial forums and threaten Europe with their own Brexit price tags, but we know that Britain will pay the vast part of the bill. The UK economic data has been great so far, but remember that Brexit hasn´t happened yet.
On the other hand, the British PM, May, is screaming out. She said that her government won´t let the British courts and legislation to keep the UK in EU. No one wants that; democracy is much more important than anything and the people of Britain made their decision. However, so did the people of Germany about 85 years ago, so…