The Euro snapped back from Friday’s highs overnight before Finance Ministers will meet in Brussels to discuss the ongoing European debt crisis. Although Greece are edging ever closer to agreeing a deal with private investors there are still plenty of hurdles to jump over before they reach the finish line. Even if a deal is agreed focus is starting now to shift on the future growth of Europe and where this will come from. The outlook for growth in Europe is looking very bleak going forward and this will put further pressure on some of the member states of the Euro.
Fitch ratings agency joined Standard & Poor’s by downgrading several European countries on Friday which has hit the Euros recent run of recovery. EUR/JPY had recovered from 0.97 to nearly 102 over the last week and a half and has now returned this morning to 100.70. EUR/USD is also heading lower and is down from Fridays high of 1.3220. This week I feel some more realistic moves are on the cards and I think we will see EUR/USD push back to 1.30 and EUR/JPY could head back below 100, which could provide and opportunity for GBP/EUR to have another look at 1.20.
With a lack of data out of the Eurozone today it will be interesting to see how the Euro fairs in today’s trading sessions. With recent data from the US being fairly good compared to expectations the data released at 1:30pm today could kick start a move lower in the Euro.
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