After the euro was unable to climb on positive data from Germany, it now falls towards the 1.2750 support line on weak German data: the number of unemployed people rose by 13K, contrary to expectations for a drop of 2K. The unemployment rate remains at 6.9%.
The opening of banks in Cyprus is awaited.
EUR/USD made an attempt to rise above 1.2805 beforehand, climbing up from support at 1.2750. A strong retail sales figure from Germany helped, but wasn’t enough to make the break.
In addition, the euro-zone release the M3 Money Supply figure: it rose by 3.1% (annually), lower than 3.3% that was expected.
After this figure, the pair is falling. Banks in Cyprus are scheduled to open at 10:00 GMT, and capital controls have been imposed to prevent a bank run.
For more on the euro, see the Euro dollar forecast.
