EUR Trading Outlook (16-12-2011)

The Euro (EUR) The EUR/USD was volatile but closed above the 1.3000 level as sellers took profit and yields on Spanish and Italian debt fell back from Wednesday highs. EU inflation was confirmed at 3.0% y/y in November and Composite PMI was steady at the 47.9 up from 47.0 previously. The outlook is still weak but the small recovery was welcomed by a market suffering from selling fatigue. Looking ahead, ECB President Draghi speaks.

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