EUR Trading Outlook
The Euro (EUR) EUR/USD broke above 1.4000 in Early Europe and didn&rsquo t look back surging higher to above 1.4200 in the US session. The large gains came as European Debt fears subsided and allowed most crosses to gain including the EUR/GBP which broke above 0.8800 in aggressive trading. EUR/JPY tested Y108 before finding resistance.
The Euro (EUR) the market moved towards 1.4000 on the news of the EU Summit deals but earlier had hit 1.3800 as disagreements spooked the markets. The New Greek deal is reportedly a 50% haircut and also announced was the expansion of the EFSF to 1.4trn through leveraging the current fund. Adding to the positive sentiment was comments that Europe will also look to further integrate economically. Looking ahead, traders will dissect the EU deal and react to commentary post summit.
The Euro (EUR) the EUR/USD did well to remain at the 1.3900 handle overnight with the headlines out of the EU summit still showing fractures. Concerns are building over Italy&rsquo s ability to pass further austerity measures. German Consumer Confidence remained steady at 5.3 in November. Looking ahead, EU Summit final day. Headlines and final statement expected late US session or even into the Asia session tomorrow.
The Euro (EUR) as we approach Wednesday&rsquo s deadline we find the market optimism continuing to grow that a substantial rescue plan is about to be announced. Germany&rsquo s Merkal overnight has been reported as asking for a leveraged bailout fund to the amount of 1trn. Oct Flash PMI Manufacturing dropped to 47.3 vs. 48.5 previously. Oct PMI Services dropped to 47.3 vs. 48.8 previously. Looking ahead, November Consumer Sentiment forecast at 5.1 vs. 5.2 previously.
The Euro (EUR) with sentiment improving on Friday the market bought up the Euro aggressively but this is being pared back on Monday as some disagreements on the Grand Plan bailout emerged over the weekend. France has withdrawn demands for the ECB to be used as bank and is instead focusing a new fund with the IMF to provide a final solution to the debt crisis. Looking ahead, Flash Manufacturing PMI forecast at 48.1 vs. 48.5. October Flash Services PMI forecast at 48.5 vs. 48.8 previously.
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