Euro Gains Support from OECD

Despite expectations of an interest rate hike by the ECB next month, the euro gained support as the OECD was only moderate in its calls for interest rate rises in the Eurozone. They said that the hikes should only be gradual and its chief economist Jean-Philippe Cotis said that the ECB should wait for second quarter GDP data before increasing rates further. The euro also gained support from Germany's deputy finance minister Thomas Mirow when he indicated that the German economy was unaffected by the euro's high level. Investors are currently awaiting tomorrow's release of the Ifo survey on German business expectations. It is expected that it may show only a slight dip despite the euro's high level.

Read more: Forex - Euro remains well-supported; market awaits German Ifo data tomorrow