EUR Trading Outlook (25-05-2011)

The Euro (EUR) the negative outlook placed on Belgium combined with the widening Greek/Portugal/Ireland bond spreads to send the EUR/USD to 1.4000. A few looks below in the European session met some strong buyers and the pair reversed in the US session to 1.4070. May EU Manufacturing PMI at 54.8 vs. 58 previously. Overall the EUR/USD traded with a low of 1.3968 and a high of 1.4136 before closing the day around 1.4040 in the New York session. Looking ahead, May German IFO forecast at 110 vs. 110.4 previously.

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