Germany, France aimed for balanced budgets for mid-decade
Sarkozy and Merkel are meeting today to set out a joint 10-year plan for the two nations. In the plan, they vow to coordinate policies as they emerge from recession and aim to balance budgets by the middle of the decade.
We’ll be watching.
EUR/USD is consolidating losses with European credit concerns still dominating trade. Central banks continue to soak up EUR/USD on declines but are able to only slow the decline so far today. We trade now at 1.3845.
EUR/USD has essentially fulfilled the technical target of many analysts with the fall to 1.3825-ish. Fresh bearishness at these levels may be a bit late. Look for rebounds toward 1.3880 at a minimum if you want to establish fresh shorts.

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