EUR Trading Outlook (09-01-2012)

The Euro (EUR) selling accelerated on Friday with the major testing 1.2700 before stabilizing but slipping to fresh all-time lows against the AUD. EUR/JPY selling also added to the downside pressure with the pair slipping below Y98 and still searching for support. More negative news emerged in weekend press reports that Greece was not reforming quickly enough and may have to leave the Eurozone if bailout funds are not received. Looking ahead, November German Trade Balance forecast at 12 vs. 12.6bn previously.

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