EUR – Domino Affect Is The Fear

Friday’s PMI data from Europe did nothing to warm the hearts of EUR investors. Nearly all the reports from Germany and France from the Flash Manufacturing and Services were negative and the broad European data was proven to be in the doldrums. The Sovereign Debt situation remains the focal point of all conversations and investors have been given additional tidbits to consider as Spain has reiterated its decision to impose austerity measures. Also Germany and Italy this weekend got into the act saying that they plan to make spending cuts. There will be no economic data from Europe today as much of the continent enjoys a banking holiday. The remainder of the week will be rather light on key statistics, and this will leave investors concentrated on the risk sentiment that centers on concerns that are becoming increasingly wider, as implications grow regarding Europe’s financial imbroglio. It is as if dominos have been now set up and investors are pondering what the repercussions will be if European governments are not able to meet their debt obligations. The EUR has been on a slippery slope and is likely to face stern winds still.

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