EUR – Unsteady Sentiment Surrounds The Single Currency

The EUR has found itself in stagnant territory much of this week, reflecting the general sentiment which surrounds the E.U. economic environment. Data from the E.U. continues to highlight poor outcomes. There will be no major releases from Europe today, yesterday’s numbers showed poor Italian Retail Sales and lackluster New Industrial Orders for the continent. The issue of Sovereign Debt certainly has not gone away and its residue is evident in the ‘growth versus austerity’ debate that is flaring. The entire financial crisis globally has always been shadowed by a debate on whether it is better to deliver swift pain now via austerity and allow for healthier growth afterwards, against trying to stimulate the economies now with pumping money that governments most likely don’t have in order to keep stability – but likely producing stagnation later on. The beginning of the global crisis actually produced a strong stimulus now argument, but it is becoming evident that the large deficits have inflicted disquiet among investors who have punished various European bond markets the past few months. The EUR finds itself lingering in a range going into today’s trading and sentiment is unsteady at best.

Written by bforex.com

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