The debt crisis in Europe has yet to be truly resolved, and the euro has been bobbing up and down in value as the situation changes. This past week, it deterred investors due to an upcoming week of risks such as an additional finance minister summit.
Jeremy Stretch of CIBC World Markets said:
“If the PMIs are any guide, the Ifo business expectations are likely to soften and along with the headline numbers could drive the euro lower.
“Having failed to rise above $1.33, we see the risk of the euro falling with a softer Ifo reading likely to exacerbate the situation as traders will lighten positions.”