On Monday, the pair fluctuated amid hopes that European leaders are coming closer to launching a comprehensive plan on Wednesday and worries after disappointing euro area reports.
Meanwhile, the main focus is on the European summit results which are grabbing the main attention in the market. Hopes increased that there will be final decision in the second summit on Wednesday; however, some expected more on Saturday meeting.
European leaders during their meeting in the weekend tackled vital issues such as banks recapitalization and expanding the EFSF firepower, where the ECB’s participation in the EFSF was mainly ruled out. Greek banks were affected after German Chancellor set a size between 50% and 60% to Greek writeowns of Greek debt, as cited by the Greens party’s Juergen Trittin.
Looking at fundamentals, the data came mixed as while Chinese manufacturing sectors showed expansion for the first time in three months in October, euro area manufacturing and services sector’s contraction widened in October.
Thus, amid the absence of data from both U.S. and U.K., the mix between hopes and fears caused the pair to move near the day’s opening level.
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