EUR Trading Outlook (12-01-2012)

The Euro (EUR) the unnecessary use of the word cataclysm from rating agency Fitch when warning the ECB to buy more Bonds spooked the market sending the EUR/USD to fresh lows under 1.2700. The market then stabilized and managed a lackluster bounce in the US session. The ECB meeting tonight is very important and new measure could spark a short covering rally. Looking ahead, ECB Rate meeting forecast to hold at 1.0% vs. 1.0% previously. Attention on ECB President Draghi press conference afterwards.

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