EUR Trading Outlook
The Euro (EUR) held strength better than most with the market bounded between 1.34-3500. News that the Irish PM had called a snap election was overlooked as was a moody downgrade warning of Portugal.   EUR/USD traded with a low of 1.3395 and a high of 1.3525 before closing at 1.3460. Looking ahead, January IFO Business Climate forecast at 109.9 vs. 109.9 previously.
The Euro (EUR) maintained lofty levels breaking briefly above 1.3500 but was unable to push higher and pulled back in the US session. The market continues to focus on the EFSF and whether there will be expansion or new facilities added to help stabilize the Debt situation. EUR/USD traded with a low of 1.3376 and a high of 1.3540 before closing at 1.3460. Looking ahead, December PPI is forecast at 0.4% vs. 0.2% previously.
The Euro (EUR) the market moved higher in Europe in response to very strong January German Zew Survey numbers at 15.4 vs. 4.3 previously. The market traded into the mid 1.3400 region before profit taking in the US session pushed the pair back under the figure. EUR/USD traded with a low of 1.3252 and a high of 1.3468 before closing at 1.3390. Looking ahead, November Current Account is forecast at -11.3bn vs. -9.8bn previously.
The Euro (EUR) the market is focusing on a stream of comments from EU officials on the prospect of European Stabilization fund being expanded. Germany is reluctant to expand the fund and this is causing tension with other members so far. EUR/USD traded with a low of 1.3243 and a high of 1.3382 before closing at 1.3280. Looking ahead, German January Economic Sentiment forecast at 6.8 vs. 4.3 previously.
The Euro (EUR) week highs above 1.3450 were seen in Europe but pared back in the US session due to profit taking. Sentiment is improving towards the single currency on the growing belief the ECB will do what is needed to support the Euro. EUR/USD traded with a low of 1.3315 and a high of 1.3456 before closing at 1.3368.
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