The EUR moved within steady territory on Monday as it gave up a trace of its previous gains against the USD. The European Sentix Investor Confidence reading was released yesterday and produced a better result, but its impact is rather minuscule among investors. Today the French Industrial Production and German inflation figures are on the schedule. The debate that is raging among investors in the European theater is centered on growth. The ECB has been adamant that growth will continue even as it points out that difficulties remain. Yet cynics remain who point out that the austerity measures taken by nations such as Greece and Spain will be difficult to enact and that their results will not be enough to stem the debt issues that have merely been pushed down the road. Another issue that could be problematic is the interdependence of the European economy and the American sphere. If the U.S. economy continues to falter its knock on effect could be enough to further dampen the landscape. The EUR has enjoyed a strong summer after been attacked from all fronts for most of the year prior to risk appetite emerging. How long will the positive sentiment prevail among EUR traders?
Written by bforex.com