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EUR/USD retreating from highs as German Factory Orders Plunge

EUR/USD is sliding back down from the highs of the day, as the clock is ticking towards the ECB rate decision and press conference. After reaching a peak of 1.3044, it is now sliding back towards 1.30. 1.3006 has been the low so far.EURUSD lower after weak German factory orders and before Mario Draghi March 7 2013

Update:  The ECB left the rates unchanged as expected, focus on Draghi.

Update 2:  Draghi Maintains Balanced Stance – EUR/USD Jumps.

German factory orders dropped by 1.9%, contrary to expectations of a rise of 0.5%. Where will the pair end this big day?

EUR/USD fell late in the New York session to the 1.2960 line, which is now a double bottom. It then recovered gradually and managed to pierce through 1.30 in the European session. A successful Spanish bond auction certainly helped. Spain managed to raise over 5 billion euros in 2, 5 and 10 year bond auctions. The 10 year yields dropped to  4.917%, considerably lower than the previous auction that resulted in a yield of 5.202%. Paying less than 5% is a positive development.

However, the depressing German data makes traders a bit more cautious. The ECB is not expected to cut the rates, but Draghi is predicted to express worries about the economic situation. The euro-zone’s economies shrank by 0.6% in Q4, inflation is lower and unemployment is higher.

Here are some previews for the big event:

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.