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2013.10.2112:58:00UTC+00Research: Eur Fundamentals

  • The euro started the week just below Friday's 8-½-month high on the dollar as pre-U.S. payrolls caution caused many investors to tamp down on greenback bearishness. 
  • Much of the euro's recent outperformance has come by default from the greenback's swift move lower in the wake of the temporary resolution to the U.S. debt ceiling crisis. 
  • The market spotlight on U.S. fiscal and monetary policies has for now overshadowed the European Central Bank's own easy stance toward policy. 
  • The euro this week should take its cues from the return of U.S. economic data and continental indicators like a mix of purchasing managers' indexes on Thursday, and Germany's influential Ifo survey of business confidence on Friday. 
  • European outcomes consistent with the recovery gaining momentum should prove supportive of the single currency.

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