EUR Trading Outlook (19-01-2012)

The Euro (EUR) the EUR/USD moved sharply higher from 1.2650 to 1.2800 on the back of the stunning drop in the January German ZEW survey and the better than expected Chinese GDP at 8.9% vs. 9.1% forecast. The German ZEW fell from -53.8 to -21.6 for the biggest improvement in the 20 year history of the Survey. Spanish bond auctions were also successful and the yields on longer term Italian debt fell slightly.

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