EUR Trading Outlook (19-10-2011)

The Euro (EUR) continued selling in Europe saw the EUR/USD below 1.3700. The mood changed dramatically after a report in UK guardian that France and Germany had reached an agreement. This deal was denied a few hours later but the Euro was already back above 1.3800. Selling did come back into the frame however after Moody&rsquo s downgraded Spain in line with the other two rating agencies. German October ZEW slumped to -48 vs. -43 forecast.

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