EUR – Brussels Summit Begins Today

Economic data from Europe was rather light and the EUR traded under the gyrations of risk sentiment. CPI releases from the E.U. proved lackluster, demonstrating once again that inflation is not a predominant theme in the current environment. Europe continues to demonstrate that its prospects for a strong recovery will remain a difficult task. However, the EUR lost ground to the USD probably due to a decrease in risk appetite coming from dollar centric developments because of poor data across the ocean. The E.U. will be holding another crisis summit in Brussels today to discuss the Sovereign Debt issues and austerity measures that its nations are being asked to consider. While investors have shown a certain degree of comfort in recent days with the EUR and allowed it to find stability there should be little doubt that the wrong turn of a card could cause it to stutter step again. The EUR enjoyed a few steady days of sunshine, but traders will have to watch for risk adverse clouds.

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