EUR/USD couldn’t quite make it above 1.3440 and is edging lower again, back towards it’s NY closing level at 1.3410.

The announcement of Italian austerity measures did give the EUR a short burst of momentum but the news remains very negative out of Europe. The Italian EconMin was probably being over-optimistic in his forecast of 0% growth through 2013 and the Irish PM has also been on the newswires announcing more belt-tightening measures.

It’s difficult to be bullish EUR in this environment, and the only factor likely to cause a sharp spike higher is that the market is already short and may run out of time before the Christmas/New Year holiday.