The euro was sold-off like hotcakes yesterday, no thanks to the disappointing aftermath following the European Summit. EUR/USD dropped to end the U.S. trading session at 1.3189, its lowest level since the first week of October.
The deterioration of the euro mainly rooted from the dissatisfaction of the market with regard to the European summit. Nothing concrete was put into action and Moody’s even added insult to injury when it said that it would review the ratings of [B]ALL[/B] European countries. That’s all European countries folks, not only the euro zone.
Market sentiment also took a hit when China’s trade balance for November declined more than expected. Instead of the surplus falling to 15.20 billion USD from 17.03 billion USD, it dropped to 14.52 billion USD.
Today, the big news release is the ZEW Economic Sentiment Survey. The market is expecting a reading of -60.3, slightly worse than the previous month’s -59.1. The actual result will be released at 10:00 am GMT.