EUR – Bond Issues A Concern

Bond markets internationally have been a nervous bunch with the prospects of a Fed intervention and continued turmoil in Europe shadowing bonds in Greece and Portugal. The EUR struggled again on Wednesday and this came with little in the way of data released. The news that may be causing some unease among traders for the Single Currency is that France appears to be in chaos with public strikes as it tries to institute reforms to its retirement age and pension laws, Greece and Portugal continue to argue about their challenges ahead, and Ireland has shown that it is struggling with it policies too. Europe will remain quiet with data today and tomorrow German Retail Sales are on the schedule. The EUR is likely to remain strongly dollar centric, but it may start to feel the weight of sentiment shifting once again if its nations economic policies foster concerns regarding the manner in which it will be able to achieve fiscal responsibility. Certainly it is not only Europe’s bonds that are raising question marks, but a fragile ‘confidence game’ exist and if investors get nervous, the EUR could find interesting days ahead.

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