Euro Remains On The Defensive.


Euro remains on the defensive, given good selling interest from funds, speculation of Asian, sovereign as well, after reports of earlier waves of buying. EUR weighed by concerns over Portugal and Greece. Will be good to watch the EU Summit tomorrow, ahead of the “actual” summit on March 24-25.


One probably risks is that the EU Heads of States as likely to discuss behind close door on need for Portugal Aid – given the record high borrowing costs for Lisbon. 10-year yield hit all time highs of 7.79% – seen unsustainable in the long run, even by the country’s own admission.

Good to watch the risks. EUR/USD at 1.3868-70, after topping at 4-month highs of 1.4039 on Monday, 7 March. Stale longs looking to sell on break of 1.3850/1.3800.

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