The EUR encountered headwinds on Wednesday after the previous day’s rather strong gains. The Industrial Production data for Europe was released yesterday and produced a gain of 0.9%, which was below the forecast of 1.2%. The E.U. economic data, like that of the United States and other major counterparts, continues to be less than promising. The ECB will release its Monthly Bulletin today, but there should not be many surprises, taking into consideration the amount of information the ECB has been forced to share the past month as it continues to battle the financial crisis and its implications. Tomorrow Europe will release Trade Balance information, but what investors will continue to monitor is all developing news surrounding talk about austerity and debt. The EUR has battled back from its lower depths the past couple of weeks as risk appetite re-emerged. The real test for the EUR will come again if international equities suddenly begin to suffer and less than fantastic news continues to surround the fiscal viability of the continent.
Written by bforex.com
