EUR – Ireland Still Defiant

The EUR remains within the Irish storm that is causing investor unease and the possibility of other doubts causing fires. The EUR struggled in early trading versus the USD falling to new recent lows, but it did manage enough backing as the day ended to find itself within an apparent holding pattern. There was little data from Europe yesterday and today only the broad Current Account statistics will cause a statistical stir. The Irish banking and debt situation is undeniably the lynchpin for the EUR at the moment, and the Spanish bond auction on schedule will likely feel its affect today. Ireland has defiantly said no thus far to any bailouts, but this is not because they do not need them, it is because they are apparently not agreeing to the conditions that will come with an acceptance of a European and IMF package. Ireland will certainly be asked to take economic measures that they will not find comfortable and until some measure of agreement can be found rancorous words may be heard. The EUR has declined the past week and investors are likely starting to ask where its true value is. The Single Currency appears set to trade under pressure today and tomorrow.

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