EUR – Spanish Banks Now In Focus

There was no major economic data released on Monday from the E.U., but this didn’t stop the EUR from being the focus of investors worldwide. The Sovereign Debt crisis has now in essence become an issue which covers the overall health of the European continent and the possibility of international contagion. Spanish banks came under an increasing glare yesterday as the Spanish government announced that it was pushing certain struggling banks into a merger to solidify them. Industrial New Orders statistics will be brought forth today by the E.U. and a gain of 2.2% is the estimate. However, investors will continue to watch the pronouncements from various European governments which get into the ‘austerity act’. Italy continues to give details about its cost savings measures and rumors persists that France is considering a change to its national retirement and pension structures. The EUR has certainly declined in a rather swift manner the past few weeks, adding on to what was already a weaker trend versus the USD. Traders who swim the single currency’s waters will face challenging tides today.

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