EUR Trading Outlook
The Euro (EUR) was sold heading into the EU session of trading, with reports that no agreement on Greece had been reached, thus being re-scheduled for Monday the 26th of November. As such, the single currency crashed back below key 1.2800 levels, to trade as low as 1.2737, before reassurance made by German Chancellor Merkel echoed confidence that an agreement to grant Greece bail-out funds would be reached, ensuring the EURO paired back all its losses, and pushed on higher following US session rally to end the trading day above 1.2850.
The Euro (EUR) the EUR/USD continued to receive support across the board after finding buyers at 1.2700 and the successful Greece Aid talks earlier this week. Israeli and Spanish concerns capped the rally at 1.2800. The outlook is mixed with the chances of a substantial relief rally for the Eurozone hampered by progressively worse data from the region and US. Asia is still a bright spot for 2013 but could also be dragged into a recession with the rest of the world.
The Euro (EUR) fell below 1.2700 in Europe as Germans ZEW report to -15.7 vs. -9.9 expected. Support was found at 1.2670 and we bounced during the US session with rumors that Spain may ask for a bailout and that Greece might receive more than 30bn with multiple payments at the same time.
The Euro (EUR) traded in a 50 point range with a rally from 1.2700 faded later in the US session. The successful Greek Budget vote helped spark the brief rally but then ongoing delays to the release of actual aid is weighing. The Troika seems to be disagreeing on whether to give Greece more time and how this would be done.
The Euro (EUR) found support under 1.2700 on Friday and closed at the psychological round number. The EUR/USD has been under pressure from weak stocks and mounting fears regarding Greece Bailout delays. On Monday we have the Eurogroup meeting regarding the troika report into Greece’s reforms and this will be reviewed before they decide to release the next tranche of money.
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