The EUR/USD continued to fluctuate on the back of the debt crisis that is back haunting the euro area amid the lack of major fundamentals.
Greece remains the hot topic for Europe as investors speculate the next move for the EU and the ECB amid the debt pressures and fears of default and rescheduling for Greece.
We saw reports suggesting the nation was in talks already for a new bailout, which Reuters quoted a source dismissing the rumors. The nation also eased the woes with a successful bonds auction on Tuesday.
Greece sold 1.625 billion euros of treasury bills above the needed 1.25 billion euros which eased some of the jitters in the market.
The market on Wednesday will continue to eye developments from the euro area’s debt crisis, while slightly start to shift the speculation to the ECB with German inflation on the queue.
Germany’s CPI index is awaited at 06:00 GMT and expected unrevised at 0.2% on the month and 2.4% on the year, and in EU harmonized terms at 0.2% and 2.6%.
From the U.S. trade figures are due at 12:30 GMT, where the trade deficit might have widened to $47.0 billion from $45.0 billion.
The volatility will prevail and the euro can reverse higher shall the sentiment continue to trend positive in the market and the fears ease over Greece and shift towards the ECB hawkishness and the positive GDP awaited for Friday.
Originally posted here
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