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2013.10.2212:06:00UTC+00Research: Eur Fundamentals

  • The euro was steady and nestled near the February peaks it touched Friday against the greenback. 
  • With the U.S. hogging the market spotlight, the euro has effectively outperformed by default from the broad bout of dollar weakness. 
  • America's government shutdown was considered counterproductive for the world's biggest economy to the point that investors now see a better chance for the Fed to wait until next year to dial down on stimulus.
  • Not long ago, currencies were driven by the view that the Fed would cut back on stimulus by late this year, a narrative that had offered solid underpinning to the greenback. 
  • Over the balance of the week, watch for the single currency to take direction from fundamental factors on the home front with key purchasing managers' index (PMI) surveys due out Thursday, followed by Germany's influential Ifo index of business confidence the day after.

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