Amid the absence of fundamentals from major economies, the sentiment showed a slight improvement before Chancellor Angela Merkel meets today with the President of the International Monetary Fund Lagarde, causing the pair to drop for the second day.
The pair did a downside correction to halt the upside trend on Monday after Merkel-Sarkozy meeting inBerlinwhich tackled a rulebook for closer fiscal compact in the euro zone.
Meanwhile, there is slight optimism European leaders are on their way to resolve the crisis before they meet in the EU summit on January 30.
The Greek government sold 1.625 billion euros on Tuesday of six-month notes with a decline in yield to 4.90% compared with 4.95% in December’s auction.
This week, eyes will be onSpainandItalyas they sell bonds;Spainwill sell bills maturing in 2015 and 2016, whileItalyis expected to auction 3-, 5- and 15- year bills.
For the franc, it took some advance after policy maker Philipp Hildebrand resigned on Monday.
On Wednesday, theU.S.will release MBA mortgage applications for Jan. 6 at 12:00 GMT followed by Fed’s Beige Book at 19:00 GMT.
The data is expected to has a slight affect the pair’s movement due to its low relevance, where the pair will probably also be affected by the general sentiment which is focusing on the latest developments from the euro area.
Originally posted here
