French FinMin: Euro too strong

French Finance Minister Pierre Moscovici said in an interview for France 2 television on Sunday that in his opinion the euro was perhaps too strong, boosted last week by signs of improvements in Eurozone’s economic situation as well as the latest decent US NFP report.

Moscovici was worried the currency’s excessive strength might hurt exports. He nevertheless added that he is confident about the French economy and that the 0.8% growth target, established for 2013, could be reached.

Moscovici’s comments caused the euro to drop against the dollar to $1.3597.

Feb 4, 2013

Forex: EUR/USD in new low after EMU PPI

The EUR/USD has just printed a new low on the release of the EMU Producer Price Index data. In December, EMU PPI dropped -0.2% as expected, the same pace as in November. Although market consensus was pointing to an annualized rise from 2.1% to 2.2%, data stayed unchanged.

Forex Flash: AUD/USD retest of 1.0500 hinges on RBA – Westpac

According to the Westpac Strategy Team, “The AUD/USD tested the mid-1.0300s and could find itself in a similar situation again Wednesday/Thursday if Australian retail and/or jobs data disappoint. However, a likely cautiously upbeat RBA (Tuesday & Friday) should see the Aussie supported on dips and probably re-test 1.0500.”