EU Morning Report - EUR strengthening, RBA easing?

The euro (EUR) is strengthening against most of its major counterparts as markets opened following the conclusion of the EU summit last week where no major decisions were taken. The eurozone heads of state met on Thursday and Friday, and for the time being agreed on a banking union and advanced integration. A supervisory authority for banks appears very likely but the timing is unknown. No discussion was made on the Spanish bailout plan. Apparently there is conformity among the European leaders that Spain’s domestic issues should take precedence for now. EU Economic and Monetary Affairs Commissioner, Rehn, shared his view that the Troika will give the green light for Greece’s next tranche of financial aid.

§ The Australian dollar (AUD) appears soft after a 2-week rally from 1.0150 to 1.0388 versus the US dollar (USD). This advancement was evident against most of its counterparts, following the release of the minutes from Reserve Bank of Australia (RBA) latest meeting, pointing towards interest rate cuts. However, Reserve Bank of Australia member, Broadbent, expressed her inclination towards a weaker Australian dollar (AUD).

§ US Tech (NDQ) plunged on Thursday and Friday after Google released their earnings report prematurely missing analysts’ estimates. Microsoft and Apple are among the tech companies that are putting the index under heavy selling pressure.

Stay in tune throughout the day with foreign exchange bullets!