The EUR continued to decline against the USD as the Single Currency ran into questions concerning any repercussions that could come about from double dip recessions if they were to come about. As much as the ECB and E.U. were able to put to rest most of the fear that impacted the EUR during the Sovereign Debt crisis, there remains difficult questions about what would happen if growth forecasts are not met as certain European governments try to practice austerity measures which have been implemented. CPI data will come forth from the continent today and tomorrow the German ZEW Economic Sentiment reading will be issued. The EUR found itself trading on sentiment generated from a dollar centric viewpoint last week. Traders this week are likely to continue monitoring the U.S. economic data and correlate it into their viewpoints about Europe’s overall outlook. The EUR certainly lost ground last week and it may face a test of its ranges depending on risk appetite in the coming days.
Written by bforex.com