EUR Trading Outlook (20-12-2011)

The Euro (EUR) the Euro was extremely contained with a dip below 1.3000 in Asia on the North Korea news reversed in Europe. A daily range on only 60 pips us extremely tight given the debt crisis and highlights the holiday period we have entered. The outlook is mixed with the consolidation potentially leading to a topside 1.3080 test. A lot the negative news is priced in and unless a shock comes to the market like a downgrade of France then any good news could spark a short covering rally. Looking ahead, ECB President Speaks. December German IFO forecast at 106 vs. 106.6 previously.

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