Foreign exchange traders buy euros even with bad data.
Today the German economic expectations worsened in March 2014 as the ZEW Indicator of Economic Sentiment fell for the fourth consecutive month to 46.6 (52 consensus and 55.7 in February).
But Foreign Exchange Traders ignored this and started buying euros again with reckless abandon.
Why do they continue down this path?
The Euro zone to me is a brilliant idea – executed very badly.
I keep thinking of George Orwell’s Animal Farm.
That ended well for the farm animals didn’t it – unless you where a pig and all was good!