Euro worries persist despite bailout
This morning, financial markets have a positive edge, but this could easily be undone as traders guard themselves against any Euro shocks. The Greek election seems to have given markets the least of what they needed over the weekend, with many questions still to be answered and Spanish bonds continuing to flash red.
The EUR/ USD is up slightly as the US dollar index gives back some of yesterday??s gains. There isn??t too much movement to speak of this morning though with the risk on pairs of the NZD/USD and AUD/USD heading in the opposite direction.
Coming up today we have UK inflation data with CPI and RPI due at 09.30. Analysts expect CPI to stay the same with RPI dropping slightly.
Following this we have German ZEW economic sentiment with European data out at the same time. Analysts expect a worsening of sentiment. US building permits follow at 13.30. The second day of the G20 meeting runs in the background throughout the day.
Trading sentiment will continue to be influenced by the Eurozone, there are some signs that pairs such as the AUD/USD are managing to shield themselves somewhat from some of the downside.
With the US dollar index still in overbought territory and the Australian dollar settling into a trend nicely, there could be further upside for the AUD/USD in the next few days.
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