Optimism About Europe Wanes, EUR/USD Down

EUR/USD reversed its rally today on concerns the European leaders won’t be able to contain the debt crisis. The European Union finance ministers meet today in Wroclaw, Poland. Finland’s Finance Minister Jutta Urpilainen said it’s unlikely they reach an agreement about measures necessary to deal with the debt issues.
Net foreign purchases of long-term securities were $9.5 billion in July. That’s higher than June reading — $3.4 billion (revised from $3.7 billion), but much lower than forecasts of $31.3 billion. (Event A on the chart.)
Preliminary Michigan Sentiment Index was at 57.8 in September, near forecasts of 57.3. August figure was revised from 54.9 to 55.7. (Event B on the chart.)


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