October 22, 2012
Uh oh, things aren't looking too good for the euro these days as it continued to slide down against the Greenback and the Japanese yen last Friday. EUR/USD ended the day at 1.3021, more than 50 pips down from its 1.3073 open price, while EUR/JPY closed at 103.27.
There weren't any economic reports released from the euro zone last Friday but jitters about the EU Summit and upcoming Spanish elections triggered a euro selloff. As it turns out, market watchers weren't expecting any positive developments from the EU officials' meeting over the weekend and they were right!
As expected, Spain was still stubborn about asking for a bailout while EU leaders couldn't seem to reach an agreement regarding the proposed euro zone banking union. This means that we'd have to wait for the next EU Summit, which is set to take place in December, before the euro zone fiscal union would be implemented.
There are no major reports due from the euro zone for the next couple of days as the first set of top-tier releases will take place on Wednesday. Germany and France are set to print their services and manufacturing PMI figures starting 8:00 am GMT that day so make sure you're prepared for additional volatility and another potential selloff in case the actual figures miss expectations.
Other than the PMI data, there are no other top-tier releases scheduled for the rest of the week. With that, don't forget to keep close tabs on updates regarding the euro zone debt situation. Be careful out there!
"The only cable I watch is the pound baby."