Wise money markets stall on Wall Street

As the wise money markets continued to digest the EU Summit- it appears it to have failed again, to ignite investor confidence with hunger for risk in US trade on Friday reversing Thursday’s gains.Wise money markets stall on Wall StreetDisappointing Existing Home Sales and corporate earnings in America helped to strengthen the US Dollar as investors sought a safe haven away from riskier assets including the euro.

The euro traded sideways against Sterling and US Dollar on Friday after the initial Summit announcement of a succession of central bank powers to Brussels failed to keep investor sentiment and led to a run on EUR/USD and also reversing gains on EUR/GBP.

Without further political statements, further delays in Troika sign off for the privatisation of Greek services, and next tranche payment, may keep Euro demand weak until German and French PMI and German IFO Business Climate Index on Wednesday.

A better than expected Retail figure on Thursday helped to prop up Sterling against the a week of a strengthening euro after further speculation that more QE could be on the way from Bank of England next month.

Other news there has been continued talk of the central Bank of Japan using more stimulus measures to boost the economy as exports slow, 10% down, and it announced that it has downgraded economic outlook for 8/9 regions in Japan for the next quarter.

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