EUR Trading Outlook
The Euro (EUR) the Euro is continuing to be sold on the crosses with fresh lows on the EUR/AUD and EUR/GBP overnight capping the EUR/GBP rally attempts. The Outlook is for timid trading while the Eurozone countries vote on the Spanish bailout. Overnight the German government passed it bill supporting the bailout.
The Euro (EUR) the EUR/USD was once again the laggard overnight with the other currencies all surging higher whilst the single currency failed to break above 1.2300 and we will need to see some positive Eurozone news to spark a more substantial short covering rally. EUR/GBP and EUR/AUD are trending lower and capping the EUR/USD gains.
The euro (EUR) recorded gains against most of its major counterparts even as the German ZEW economic sentiment and current situation indices came out lower than expected. On other news, Greece remains under pressure to deliver additional spending cuts, while Finland achieved a collateral deal as part of the Spanish bank bailout. Versus the US dollar (USD), the single currency rose to 1.2295 from 1.2264.
The Euro (EUR) the EUR/USD enjoyed a second day of rare gains up to 1.2270 after stocks continued to rally and fears eased that the Debt crisis was spirally out of control. The USD weakness from the growing FED easing speculation also helped underpin the rally but for more substantial gains we are going to need solid news.
The Euro (EUR) large buying spooked the shorts on Friday and we saw a sharp rally from 1.2170 to 1.2250. Strong US Stocks supported the move higher and closed near highs. The EUR/GBP and EUR/AUD showed that the Euro was still lagging however with both crosses dipping in the US session. The outlook this week will rely on EU countries passing the Spanish bailouts without major disruption.
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