The eurozone seems to have found itself at the crossroads. However, the destiny of the common European currency is decided Frankfurt, where the ECB is headquartered, not in Athens or Rome.
Most analysts assume that the eurozone debt crisis is about to be resolved or at least eased. The Italian T-bond yield keeps declining, thus reassuring investors. Most investors consider the Italian bond yield as an indicator of the economic situation in the eurozone. That is why they think that the situation is improving.
Moreover, there is another positive factor: the ECB has decided to provide more easy 3-year loans for European banks at very low interest rates.
According to the experts of , since the beginning of the European trading session, the price of the 6E futures contract (EURUSD) has been fluctuating within the 1.3150-1.3200 range. Tonight Asian traders initiated a short rally but later the trading volume disappeared, thus suggesting no demand. However, the situation may change during the Euro session.
