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EUR Trading Outlook (01-02-2011)

The Euro (EUR) led the market higher rebounding above 1.3700 as Egyptian concerns faded quickly and the buyers returned in force. January Inflation Flash came in at 2.4% vs. 2.3% forecast and confirmed a pick up in the key indicator. EUR/USD traded with a low of 1.3570 and a high of 1.3741 before closing at 1.3690. Looking ahead, January German Unemployment Change forecast at -10k vs. 3k previously. Unemployment Rate forecast 7.5%.

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