The EUR traded to new lows early on Monday but was able to bounce back and push itself at least into stronger parts of its intraday ranges. The EUR found some stability as Hungarian officials stepped forward and said that they had essentially been ‘misunderstood’ regarding the depths of its financial concerns. The Hungarian financial minister pointed out the country believes they can manage their fiscal environment without further need of assistance and maintain its stated budget. The E.U. is also holding talks in order to formulate its debt rescue plan with a ‘super fund’ that would back nations who face a monetary crisis. The question that investors are asking more than anything is if the EUR has found its fair value and if enough of its ‘premium’ has now been priced out of the Single Currency due to the Sovereign Debt issues. Fed Chairman Ben Bernanke gave the EUR his own backing last night, and said he believes the E.U. will act in a coordinated fashion and the EUR will remain a viable currency. German Industrial Production figures will be brought today, but investors may pay as much attention to strikes going on in Spain as these economic numbers. The EUR remains a currency with plenty of questions and risk sentiment will hold sway again today.
Written by bforex.com