By FX Empire.com
The EUR/USD continues to trade positive and was supported on Wednesday with the upbeat news and continued support and progress to end the debt crisis.
The Slovak setback did not hold the gains much for the euro as the market soon rebounded supported by European Commission President Jose Barroso presented plans to recapitalize banks and said that governments must maximize the capacity of the EFSF.
Slovakia’s political parties also reached a deal on the EFSF and that the next vote due also this week will see the ratification of the new powers of the EFSF which also helped sustain the gains for the euro and fuel the relief rally.
The focus remains on the debt crisis and although there was are no reviled concrete plans till now on how to capitalize banks the progress is supporting the ongoing optimisms.
At 08:00 GMT the ECB will release the monthly report which has little impact on the market since it reiterates the assessment presented following the meeting from Trichet.
The U.S. trade figures are due at 12:30 and the trade deficit in August is expected to widen to $46.0 from $44.8 billion.
The weekly jobless claims are also due at 12:30 GMT after last week they rose to 401 thousand.
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