EUR Trading Outlook (02-06-2011)

The Euro (EUR) traded at fresh weekly highs in Europe before slumping on risk aversion due to the sharp fall in US stocks. May PMI Manufacturing fell further on revisions to 54.4 vs. 54.6 initially. EUR/CHF slump towards fresh all-time lows near 1.2000 on continued demand for the safe haven Swiss franc. Overall the EUR/USD traded with a low of 1.4306 and a high of 1.4460 before closing the day around 1.4350 in the New York session. Looking ahead, ECB President Trichet speaks.

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