EUR Trading Outlook (23-03-2011)

The Euro (EUR) fresh highs in Europe reversed on concerns that the Portugal Politics will get in the way of austerity measures required for the small EU country to avoid a bailout. Debt costs increasing may reignite the Debt Crisis with Germany a focal critic and close to elections. The ECB moving to raise rates is supporting the EUR/USD although if the Debt crisis reignites they may have to delay action. Overall the EUR/USD traded with a low of 1.4161 and a high of 1.4250 before closing the day around 1.4180 in the New York session. Looking ahead, January Industrial Orders forecast at 1.5% vs. 2.1% previously.