EUR Trading Outlook (01-03-2012)

The Euro (EUR) the big news in the European session was the second LTRO which saw 530bn lent out to 800 European banks. The market didn’t really react however as 500bn was expected and had already rallied to the day before. The failure to break above 1.3500 and the stronger USD in the US session sent the major on a dramatic fall to 1.3300. The uptrend is under threat and a break below 1.3300 could lead to further losses while stabilization should lead to a new short term range been formed. Also ahead, February PMI forecast at 49. Also January Unemployment forecast at 10.4%. From the US, Weekly Jobless Claims forecast at 351k vs. 351k previously. February ISM manufacturing is forecast at 54.5 vs. 54.1 previously. Also Fed Chief Bernanke speaks again before the Senate Banking Committee.