Forex Flash: EUR Reality Check – OCBC Bank

Emmanuel Ng of OCBC Bank notes that the Euro took a reality check on Monday as underlying political concerns in Spain and Italy resurfaced while the resolution of the majors ended largely mixed against the dollar.

Meanwhile, he notes that a slightly more consolidative mood within global markets also saw the JPY retrace partially against its peers, despite more dovish comments from Japanese Finance Minister Aso. Ng sees that this week, all eyes will be on the ECB, with particular attention expected to be focused on Draghi´s comments pertaining to the economic outlook as well as any references to the valuation of the EUR. He adds that on Thursday, a two day EU summit n fiscal matters is expected, but this is believed to be secondary to the ECB on Thursday.