The EUR has continued to face a reemerging gauntlet of negative sentiment based on debt issues faced by member nations within the European Union. Ireland continues to have fingers pointed at it regarding it banks and debt. The IMF is on the record as saying it does not think Ireland will need help however, Ireland itself has not ruled out a scenario in which it will need to ask for financial consideration. There was very little data from Europe on Monday, but today the ZEW Economic Sentiment report is due and broad European CPI figures will be brought forth too. Investors are certain to continue to focus their attention on the weak links in the overall scheme of European economics – namely Ireland, Greece, Spain, and Portugal. Growth prospects are not certain for the continent and legitimate concerns are being expressed about fiscal policy on a whole by the ECB and E.U. members. The EUR has found a tough path the past week and it may continue to find itself under pressure if risk sentiment stays weary. The question for the EUR – end of the day – may be who do you believe? Governments and their officials say no imminent debt failure is in store while investors are apparently skeptical.
Written by bforex.com