The EUR has reemerged these past couple of trading days. Few analysts were anticipating such a rapid bounce-back in the value of the EUR by this time last week. Now, however, it seems as if this rise has left some feeling uneasy. Upward corrections to such a sustained downward movement are to be expected, analysts have stated, but n the other hand, there is a concern that these sharp swings represent instability, and have a number of investors worried as a result.
The EUR made a solid rebound against some of the riskier currencies, such as the CAD, AUD, and NZD. The most significant bounce was no doubt against the US Dollar. The EUR/USD currency pair struck a low mark under 1.2200. The pair now trades over 400 pips higher with a price of 1.2633 as of this morning. The other most noticeable gain was the EUR/AUD which spiked over 1,200 pips in just 2 days and currently trades at 1.5298, up from just under 1.4000.
Europe is expected to publish its series of data releases on manufacturing and services data from across the region. This data should help fill in some of the gaps investors have been concerned about lately. Germany will also be releasing its Germany Ifo Business Climate report at 08:00 GMT. If confidence in Germany is indeed on the rise, as is forecast, we could see the EUR's rebound sustain itself into the end of this week's trading.