It started off with a bit of a softer mood but we are seeing things improve in European morning trade. Here’s a snapshot of the equities space at the moment:

• S&P 500 futures -0.1%
• Nasdaq futures flat
• Dow futures -0.1%
• Eurostoxx -0.1%
• Germany DAX +0.1%
• France CAC 40 flat
• UK FTSE flat

The push and pull mood continues from last week and with the Fed only coming up next week, it might be tough to build much conviction in the days ahead as well. Don’t forget, there’s also month-end trading to contend with in the latter stages this week.

For European indices, the DAX and CAC 40 are continuing to hang at the highs for the year.

This article was written by Justin Low at www.forexlive.com.

• German economy did better in Q1 than expected a month ago
• Activity is likely to have picked up again somewhat
• Price growth is likely to ease further even if core inflation remains elevated for some time
• Services inflation is anticipated to ease slowly moving forward
• High employment should keep supporting consumption, with unemployment likely to fall slightly in the month ahead

Just a couple of token remarks but the long story short is that the German, and euro area, economy has held up better than expected to start the new year. Inflation is still a problem but the situation and outlook should gradually improve in the months ahead, even if core prices are estimated to hold higher for now. At least, that is what they are believing.

This article was written by Justin Low at www.forexlive.com.

The market moves so far today have been generally light but the euro is seeing a decent advance from around 1.0970 to 1.1020 in European trading today. There’s not much of a catalyst but it comes off the back of more mixed trading among major currencies, with Treasury yields keeping lower while equities have trimmed losses somewhat.

EUR/USD is testing waters just above 1.1000 for the first time since in over a week after having consolidating around 1.0930 to 1.0990 for the most part last week.

Buyers are back in near-term control and they are keeping a hold above the 100-week moving average of 1.0923 but will have to work through weekly resistance around 1.1033 and last week’s high of 1.1075 to really solidify any further upside momentum.

This article was written by Justin Low at www.forexlive.com.