EUR Trading Outlook (16-11-2011)

The Euro (EUR) Italian debt spiked above 7.0% and the EUR/USD fell to 1.3500 on reports on new Italian PM struggling to gain consensus on new austerity measures. The Market bounced in the US session as stocks reversed direction and sentiment improved on solid US economic numbers. The crisis is not over but the ECB is supporting the bond market stopping things from getting out of control and the Euro crashing. Looking ahead, October CPI forecast at 3.0% y/y unchanged from last month.

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