September 11, 2012
Not so fast, little one! After rallying by more than a hundred pips last Friday, EUR/USD erased some of its recent gains as it closed at 1.2759, 52 pips down from its 1.2811 open price. EUR/JPY also ended the day in the red as it retreated from the 100.00 handle and closed at 99.84.
There were hardly any reports on the euro zone's schedule yesterday, save for the French industrial production figure and the euro zone Sentix investor confidence report, both of which came in better than expected. Without any other reports that could've influenced risk sentiment yesterday, much of the euro's losses could probably be attributed to quick profit taking after Friday's rallies.
There are no major reports on the euro zone's agenda for today, leaving euro pairs to take their cue from market sentiment. Bear in mind, however, that the Dutch are set to hold elections today while Germany's constitutional court is set to discuss the validity of the euro zone's rescue funds. If all goes smoothly, the euro might have a chance to hold on to its recent gains. Otherwise, a euro selloff might be in order. Keep your eyes and ears peeled for updates!
"The only cable I watch is the pound baby."