Make that five in a row! Once again, the euro stumbled across the charts like a drunk frat boy, as debt-related concerns weighed down the shared currency. EUR/USD fell 48 pips to finish at 1.2902, its lowest closing price in two weeks.
Once again, bailout concerns dominated euro flows, as Spain remain reluctant to file for a bailout. Spain has been adamant about NOT tapping into any bailout funds, although there are rumors that our amigos may just be stalling for time until all the election buzz is over.
Meanwhile, Greece is doing its best to avoid having to adhere to any additional austerity measures as it awaits the next round of bailout funds. If the Troika feels it is necessary for Greece to implement stricter cost cutting measures, it could trigger more uncertainty in the markets as we’d most likely see a negative reaction from Greece.
In other news, the German preliminary CPI report indicated that inflation remained flat this past October.
For today, we’ve got a couple of second tier data headed our way.
First, there’s the Spanish GDP report due at 8:00 am GMT. Expectations are that the Spanish economy shrank by 0.4% last quarter, which would equal the same drop we saw during the 2[SUP]nd[/SUP] quarter.
Later on at 8:55 am GMT, the German unemployment change report is projected to show that 10,000 lost their jobs month. This would mark the 5[SUP]th[/SUP] straight month of a decline in the job market, although it’s still nowhere near the losses we saw back in 2008.
If these reports come in worse than expected, it could give the bears enough ammo to drag down the euro for the sixth consecutive day!