Following its decline at the end of last week, the Euro remained low during Monday’s Asian session, as investors waited anxiously for reports about German business confidence which are due out later today. The common currency fell 0.4 percent to $1.2512 on August 24th, and continued sliding today to $1.2510.
London markets are closed today for a national holiday, and markets in the rest of the Eurozone are expected to open cautiously, as investors speculate on the meaning of German Chancellor Merkel’s words yesterday, when she told German politicians not to speculate too strongly about a Greek exit from the European Union. Merkel referred to this time as a ‘decisive phase’, causing investors to be further confused as to what the next step will be towards the salvation of the region’s economy. Contributing to further concern about the Euro is the expected report from Munich’s Ifo Institute on Monday which is expected to show that Germany’s business climate index has slipped to the lowest point since 2010.
Later this week the Federal Reserve’s annual symposium will be held, and many investors are waiting on the sidelines until Chairman Ben Bernanke makes his remarks. Several times in the past the Chairman has announced monetary easing policies to encourage the growth of the dollar. This year, ECB President Mario Draghi will also be speaking at the symposium.