The EUR continued to keep pace on Friday and managed to go into the weekend with most of its gains intact after a strong performance from the days before. The EUR did move in a fairly tight range on Friday as the international equity markets were hit by declines. The fundamental data from Europe continues to be lackluster. Trade Balance numbers from the E.U. and specifically from Italy were below the estimates. There will be little in the way of releases today, except for the Current Account report from the European Union. The EUR cannot quite get away from developing news happening over the weekends. Hungary made it known that it has reached an impasse with the E.U. and IMF over loan guarantees, because they do not see eye to eye regarding austerity measures. The news from Eastern Europe underscores that the underlying weakness within the E.U. has not disappeared and that many risks remain. Questions about Sovereign Debt, austerity, and the implications on growth has become an old song, but one that should be listened to once in a while. Traders must stay cognizant of prevailing ranges and market sentiment which remains on a razor’s edge.
Written by bforex.com
