A new act in the theater of the absurd for the EUR erupted on Friday when Hungarian officials publically said that they might have a difficult task meeting debt obligations. Hungary does not use the EUR but it has had its government spending backed by the E.U. in a massive undertaking and the reports of impending doom shook the marketplace. The EUR moved lower as the news made its way through the news services and the Single Currency promptly sank to new four year lows. Over the weekend Hungarian officials tried to back pedal from their pronouncements and said that the statements were not correct. German Factory Orders data will be released today, but the impetus for EUR traders will remain all about risk sentiment. One of the problems that the EUR is now facing among investors is a question of legitimacy as concerns continue to cascade regarding the lack of transparency and inability to put one coordinated plan of action into place for the European Union. Short term versus long term trading are two completely different birds, but traders looking to take advantage of the volatile range of the EUR will have to be on their toes.
Written by bforex.com