On Monday, the euro failed (again) to profit from constructive sentiment on the European (equity) markets. The impact of the positive news from the weekend petered out soon and EUR/USD gradually drifted toward the 1.30 pivot. However, a real test didn’t occur (yet). Intraday, EUR/USD changed hands in the 1.3070 area in Asian trading. The reelection of Italian president Napolitano and the growth supportive talk from the G20 supported a positive risk environment in Asia and early in Europe. However, any attempt of EUR/USD to test the topside was almost immediately blocked. A similar pattern was seen in the (core) European bond markets as the bund turned north soon after the open of the markets even as equities did rather well.
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