The shared currency is hovering over the 1.2900 mark at the beginning of the trading week. Unexpected and positive data out of China and eurozone manufacturing PMI readings are extending on Monday the relief sensation brought in by the stress tests on the Spanish banking system, which results were in line with market expectations.
Still far from the 50 threshold dividing expansion from contraction, and with the exception of France, manufacturing prints in the rest of the euro bloc members have in fact showed some sort of improvement. Unemployment figures in Italy and the pan-European composite have remained in previous' levels, maybe demonstrating that the upward trend could well be running out of steam. Yes, true, Spanish unemployment - mainly that among under 21 years old - remains at sky-like levels, but even those figures can find their way down.
Analysts' opinions are well divided regarding the near and medium term future of the single currency, although the vicinity of 1.2800 (reinforced by the moving average 200 day) and the key resistance region around 1.3050 are marked as the lower and upper lines-in-the sand for this market. Penetration and follow through them would likely give birth to new trends in the cross, given that there won't be any major game-changer kept out of sight somewhere.
What's on the cards for tomorrow?
Extremely light docket lies ahead on Tuesday for the eurozone, as Producer Price Index is only expected in the bloc. Risk trends may take a breather, as Chinese markets will be closed due to the National Day. The major event will run in the Asian session however, as the central bank commanded by G.Stevens will hold its interest rate decision, expected to remain unchanged at 3.5%.