Today is Sat, July 22, 2017 22:50:56 GMT
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Currencies EUR USD News Back To Where We Started: Euro (EUR)

Well for all of the recent fear emanating form the Euro zone because of the debt crisis and the recent sell-off that has occurred, the Euro is right back to where we started 2011.  As Yogi Berra would say, “deja vu all over again!”

But seriously, despite the wild ride that has occurred we are right back to where we have started.  But, we have had the benefit of another year to deal with the problems and allow the crisis to begin to work itself out.  This means that we are likely to see this type of activity going forward as the short-term funding problems of the indebted nations will carry volatility forward for some time to come.

So have we reached the bottom for the Euro?  Unlikely but we could be in a scenario where a ratcheting down of the EUR/USD pair takes place, with the possibility of testing 1.20 in bad times and the possibility of re-visiting 1.40 if the global economy starts to improve.

But as the saying goes, its going to get worse before it gets better so my feeling is that we will see 1.20 before we see 1.40.

What 2012 holds for the forex market is anyone’s guess but I can guarnatee there will be plenty of opportunities!

Happy New Year to all!