EUR Trading Outlook (29-02-2012)

The Euro (EUR) the Euro fell going into Europe as the ECB suspended accepting Greek bonds as collateral but given the relatively small size of this asset and expectations of a strong take up of lending tomorrow the bulls are looking to retest 1.3500 in Asia on Wednesday. How the EUR/USD will react tonight to the second LTRO is up for debate with a strong pickup suggesting bank stress still exists but also offering a short term solution to this issue. Looking ahead, German Unemployment Change is forecast at -5k vs. -34k previously. Also ahead, February Chicago PMI is forecast at 61.5 vs. 60.2 previously. Also Fed Chief Ben Bernanke Speaks.