Euro: No Bias Equals No Action

Written by Kathy Lien, Chief Strategist The Euro has weakened modestly against the US dollar following a surprising drop in German factory orders. For the sixth h in a row, factory orders have been negative, which comes in sharp contrast with the stronger manufacturing PMI report released earlier this week. According to Goldman Sachs, European Banks may have to raise as much as EU90 billion euros to restore their balance sheets. On Thursday, ECB President Trichet had his chance to engineer a new trend in the Euro. The market was looking for hawkish comments and if he ivered them, the EUR/USD would be on its way to a new record high. Unfortunately Trichet gave currency traders little to work with by introducing two new buzz words - “no bias.” This proved to be the biggest disappointment for Euro bulls and unless Trichet... [read full story]