Even though the EBA published its stress tests result, showing that only 8 of 90 banks failed the tests giving the Euro some relief, "the Euro zone politicians are still struggling for a solution to the sovereign debt crisis after the situation escalated last week", said Antje Praefck, analyst at Commerzbank.
Meanwhile, "in the USA, the debate over the raising of the debt ceiling is becoming more and more urgent. There is a chance of a US default at the beginning of August if the government and opposition cannot come to an agreement. The rating agency Moody’s has therefore placed the country's rating under review for a possible downgrade," said Praefck.
"Against this background, general uncertainty in the currency markets remains high. Depending on the news flow, sometimes USD and sometimes EUR will come under greater pressure… All this points to choppy, volatile sideways trading in EUR-USD over the coming days", added Antje Praefck.
Meanwhile, "in the USA, the debate over the raising of the debt ceiling is becoming more and more urgent. There is a chance of a US default at the beginning of August if the government and opposition cannot come to an agreement. The rating agency Moody’s has therefore placed the country's rating under review for a possible downgrade," said Praefck.
"Against this background, general uncertainty in the currency markets remains high. Depending on the news flow, sometimes USD and sometimes EUR will come under greater pressure… All this points to choppy, volatile sideways trading in EUR-USD over the coming days", added Antje Praefck.
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