The euro backpedaled from 10-week highs near $1.14 against the greenback. But underlying sentiment remained fragile, highlighted by the smaller than expected improvement in German industrial orders which underwhelmed with a 0.9% increase in March, a fraction of the expected gain of 1.5%.
The euro has found a supporting cast in rising German bond yields, and the greenback's turn for the uncertain. Still, Greece's unresolved cash crisis should help keep the euro on an unpredictable path over the short run.
The euro is still saddled with a generally bearish longer run outlook on the view its shaky fundamentals will continue to lag behind the U.S. whose economy is expected to regain its bullish form over coming months which would allow the Fed to boost interest rates.
