EUR Trading Outlook (13-12-2011)
The Euro (EUR) the EUR/USD broke down to multi month lows on the back of the rating agencies dissatisfaction with the EU summit and the negative rating watch remains for most of Europe. Yield on Italian bonds crept higher towards the 7% level on the 10 year and is threatening to spiral out of control in coming days. The EUR/USD could test 1.3000 in coming days if the crisis continues as it has broken previous support at 1.3300. Looking ahead, December German ZEW forecast -56 vs. -55.
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