February 11, 2010
The euro gave back some of its winnings from the day before, as the dollar bounced back on some comments made by the Fed yesterday. The EURUSD closed lower at 1.3730 after trading as low as 1.3677.
Reports revealed that French industrial production dropped in December, as production fell 0.1% in December. The report failed to meet consensus of an increase of 0.6% although the impact of this data on the market was minimal. Seems as if traders were keeping their eyes and ears open for more news on Greece debt...
Remember, there are rumors circulating that Germany and other EU members will actually extend a helping hand to save Greece from its troubles. We can probably expect the EURUSD movement to be pretty volatile as traders decipher all the coded messages made by EU officials. In any case, we may have better indication of what their plans are for Greece when they meet today for the EU Economic Summit. If they fail to agree on a concrete plan to aid Greece, it may causes traders to sour on the euro once again.
"The only cable I watch is the pound baby."