On Wednesday, EUR/USD showed some intra-day volatility surrounding the release of the German IFO, and finally closed marginally higher at 1.3014, up from 1.2998 on Tuesday. The absence of follow- through selling after weak EMU eco data in the past two days, suggests that short-term the market seems satisfied with current levels. New information about the US economy to be released on Friday (GDP) may be needed to get more directional momentum. Intraday, EUR/USD opened little changed and traded sideways till the opening of the European equity markets. Follow-through buying pushed equities slightly higher, but once more the euro couldn’t profit from a better sentiment on risk. Initial euro losses were minor though, but a much weaker-than-expected German IFO business confidence report hit the pair and EUR/USD dipped to an intra-day low at 1.2953.
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