The EUR/USD was dominated by tight trading ranges on Tuesday as thin trading volumes and the lack of major fundamentals deprived the market of any
EUR/USD Forecast Dec. 28, 2011, Fundamental AnalysisThe EUR/USD was dominated by tight trading ranges on Tuesday as thin trading volumes and the lack of major fundamentals deprived the market of any support.
Investors are still cautious over the European outlook and the week for Europe will be centered on the Italian bond auction. On Wednesday investors will turn their attention to the Italian bond sale as the nation prepares to sell 9 billion euros of 179-day bills and up to 2.5 billion euros of zero 2013 bonds.
We still expect choppy trading on Wednesday with the low trading volumes yet violent moves might be seen if the auction was a surprise to the market as the low volume will be the reason for sharp movements.
No major news scheduled and the market movement will be thin on low volume and focused on the sentiment. The eyes will be on Italy that will be preparing to auction new bonds at 10:00 GMT.
