EUR – Little Data But Plenty Of Questions

The EUR lost ground to the USD on Monday as traders continued to have their concerns raised about the prospects of a knock on effect should the U.S. economy stumble. The Sovereign Debt issues within Europe in many respects have been continued to be pushed back and not discussed in full, but there is little to stop investors from the rationalization that a poor economy in the States will lead to additional tough times in the E.U. and therefore little in the way of growth. There was no major data from Europe yesterday and today will remain relatively light with the German Unemployment Change and Italian Retail Sales figures. The E.U. will also publish its Flash CPI Estimate today. Tomorrow German Retail Sales will be brought forth. The crux of the matter for investors this week will be the ECB monetary policy meeting on Thursday and what Claude Trichet has to say about the economic forecasts for Europe. The EUR will continue to find itself under a dollar centric mantra because of recessionary fears coming from across the Atlantic and the rather unsavory equation that this creates in the E.U when weighing austerity versus growth.

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