The Euro found support below 1.30 on Friday, recovering back to the 1.3060 area and it pushed slightly higher on Monday, although there was still an important degree of resistance with the Euro under-performing on the major crosses. Underlying confidence in the US economy will tend to remain weaker in the short term with growth not firm enough to dispel doubts over the trend while the data was not weak enough to increase global growth fears. The Euro will tend to gain support from improved risk appetite and firm economic data will also continue to offer some support. The Euro will gain important protection from a lack of confidence in the US economy, but there are still very important vulnerabilities. Despite initial US weakness, there is still likely to be tough Euro resistance just above the 1.31 area.
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