The EUR completed yesterday's trading session with mixed results versus the major currencies. The 16 nation currency was little changed against the USD and the pair closed at 1.3490 levels, but slightly higher against the GBP in a volatile session and closed at 0.8785 levels.
The EUR fell to a nine-month low of $1.3440 last week on concerns about Greece's public finances. A rating downgrade of Greece's four largest banks by Fitch on Tuesday reminded investors of the financial woes facing the country. Moreover, recent data showing German consumer sentiment set to decline in March also added to negative EUR sentiment, as did a weak German business sentiment Tuesday.
Sterling pound rose 0.2% to $1.5430 against the USD in the early trading yesterday, after having tumbled on Tuesday when the Bank of England left the door open to more emergency measures and issued a downbeat economic outlook.
Looking ahead today, the news event that may have a very large impact on the EUR and its main currency pairs in today's trading is the German Unemployment Change around 8.55 GMT. This report is very important and is likely to impact the EUR's volatility. Traders should pay close attention to the market as there is an opportunity for traders to capitalize on the fluctuations which are likely to follow this release.