EUR Trading Outlook (30-11-2011)

The euro edged lower today trimming some of its gains as investors appear cautious over the eurozone officials’ plan to resolve the growing debt problems in the region. Eurozone finance ministers agreed to boost the firepower of the European Financial Stability Facility with 250 billion euro of capacity available for leveraging and several EFSF leveraging options are being discussed. They agreed to release the sixth tranche of funding to Greece and Eurogroup Chairman Juncker said the money would arrive by the middle of December. Today, Asian equities fell and precious metals plummeted as optimism in the market starts to fade. Versus the dollar, the single currency jumped to 1.3441 but today it slid as low as 1.3258. The market is now focusing on the European Union summit on December 9 where Germany and France are expected to discuss the European Central Bank’s role in fighting the eurozone debt crisis.