EUR – Rumors And The ECB

The EUR managed to trade in range on Tuesday as investors cautiously moved in what are still nervous circumstances. German Industrial Production data was released and turned in a slightly positive outcome, but as mentioned yesterday the numbers were not exactly the talking point of the day. Instead what remains in focus are stories about Spanish banks and their liquidity and what are the real possibilities of a restructuring of Sovereign Debt unfolding among troubled E.U. nations. Tomorrow the ECB will hold their monetary policy meeting and press conference. And going into the event, investors will be well aware that the previous press conference did not go too well for ECB President Trichet who fumbled for answers and promptly sent the EUR into a spiral. The EUR finds itself at a critical juncture in terms of value and there can be no doubt that traders are viewing its current levels carefully. Europe will be quiet regarding data today and risk sentiment is sure to be determined largely by news and rumors that are circulating among market participants.

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