The EUR showed that it had the ability to withstand the rumors that were cascading around the Bank Stress Test and finished the week within the higher realms of its recent range against the USD. The results of the Stress Test which came out on Friday evening are still being debated and tough questions remain about its measurements. While many point to a brighter future for the fiscal ability of Europe’s financial institutions, others continue to ask about criteria and what could take place if an economic recovery is not as attainable as has been prescribed by the ECB. The German Ifo Business Climate reading produced a result of 106.2, beating the forecast of 101.5. There will be no major data from the E.U. today, but tomorrow the GfK German Consumer Climate figures will be published. The crux of the story today for the EUR will be the manner in which the Banking Stress Test Results are examined and debated. The EUR is at the mercy of a ‘confidence game’ and its gyrations will be determined largely by the surrounding debate.
Written by bforex.com
