EUR Trading Outlook (16-05-2012)

The euro (EUR) recorded losses against most of its major counterparts as the news from Greece heightened risk aversion. The final round of talks on forming a coalition government yesterday produced no breakthrough. The debt-ridden nation will now proceed with new elections in June. As the ongoing drama unfolds, fear and uncertainty concerning the eurozone future of Greece take over. There were reports that on Monday, 700 million EUR where withdrawn from Greek banks. Against the US dollar, the single currency dived to 1.2734 – a 5-month low – from 1.2830. European Central Bank (ECB) President Draghi is due to deliver a speech on “Monetary Policy in Unconventional Times”, a rather interest topic that is expected to capture the attention of investors worldwide.