The EUR continued to trade firm on Monday and this came as Sovereign Debt related news did make its way into the public domain. Spanish bond yields did increase yesterday on rumors that the Spanish government would have problems meeting its obligations. Germany and France have issued a statement that calls for a stronger E.U. economic government. One of the primary concerns for investors are credibility issues and a fear that a cohesive plan to create a clear plan of action still does not exists even though plenty of rhetoric has been heard. The question is how a myriad of nations will find one unified path? France and Germany both appear to be keen on achieving stability, but how this will come about is the one trillion EUR test. Today the German ZEW Economic Sentiment reading will be published and a number of 48.7 is the estimate. The EUR was able to gain slightly once again on the USD on Monday and it has enjoyed a few days in the sun, but risk sentiment conviction still appears to be tentative.
Written by bforex.com