Not a great deal of excitement to report from Tuesday, another marginal recent low for EUR/USD noted, while USD/JPY continued to slip back from its recent highs. FX traders did perk up as newswires quoted Germany as saying that we would not see joint Eurozone bonds 'as long as she is alive' , but that quickly reverted to a 'source of a source' story.

 

Range bound market before Merkel-Hollande Summit, Euro finmins emergency teleconference to discuss request from Cyprus and Spain. Little impact in Asia after Germany downgrade.

 

Wednesday does not promise a great deal more, Italy the next Eurozone member with some 6m T-Bills to sell (around EUR9bn), while it will be worth keeping an eye on the newswires on the eve of the latest in a long line of EU summits where, once again, hopes of a solution to the Eurozone crisis are somewhat low, though maybe not as low as expectations.

 

Posted by Mike Moloney | Account Executive