EUR/USD Forecast Dec. 30, 2011, Fundamental Analysis
The EUR/USD pair declined on Thursday, reaching the lowest level recorded since September 2010 after the Italian bond sale wasn’t as successful as expected, where yields on long-term bonds remained relatively high around the 7.0%, while the treasury was not able to sell as much bonds as targeted.
Fears spread in the market after the Italian bond sale highlighted the inability ofItalyto handle the high borrowing costs, whereItalysold bonds yesterday below the targeted quantity as yields remained unsustainable.
After the major event ended yesterday (Italian BondSale), volatility and fluctuations are expected to remain evident during the session today, especially with the lack of major fundamentals from Europe and theUnited Statesand as this week and this year comes to an end, awaiting the next year’s developments in Europe and theU.S.
No major news scheduled and the market movement will be thin on low volume and focused on the sentiment.