By FX Empire.com
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.
Still, the main focus is on the European summit results as hopes increased that there will be final decision in the second summit on Wednesday, yet, others expected more on Saturday meeting.
The main issues discussed were banks recapitalization and expanding the EFSF firepower while the ECB’s participation in the EFSF was mainly ruled out. Worries persisted on Monday among Greek banks 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, 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 Switzerland, the mix between hopes and fears cause the pair to move near the day’s opening level.
Read more Daily Forex Fundamental Analysis here.
