The EUR maintained its range on Monday, this after starting the day on a weaker foot, but it found the ability to advance as the day progressed. There was little in the way of economic data yesterday, but news from Hungary and Ireland did fill the airwaves with talk about Sovereign Debt issues. German PPI will be released today, but this will likely be a non event, unless traders suddenly turn their attention to inflation data (or the lack of it) for a change of pace. Tomorrow will be another quiet day from the E.U., but investors will keep their eyes focused on Thursday’s upcoming PMI reports from the continent, and the Stress Tests results which will be published on Friday evening. Rumors are swirling about what the Stress Tests will say about the health of European banking sector, but investors may also be skeptical about the reports on a whole and question if real values are being examined. A cynic might take the approach that the E.U. will not release anything that it feels could impact its outlook negatively. Thus, it may be wise for investors to continue ask tough questions no matter the answers given. The EUR has done well the past couple of weeks, but besides traders who is actually buying this currency and why?
Written by bforex.com
