The EUR rose slightly against the dollar on Monday as Abu Dhabi's decision to throw
Neighbor Dubai a $10 billion lifeline to repay debts slowed safe-haven buying that boosted the U.S. currency last week. The emirate's move initially prompted investors to sell the dollar and push up global equities on improved risk appetite.
The 16-nation currency edged up to $1.4647 in late New York trading from $1.4617 Friday after Greece's prime minister announced a barrage of spending cuts and warned that the country risked drowning in debt. The government has promised to step up efforts to reduce the deficit after a ratings agency downgraded the country's debt rating. Also last week, a rating agency lowered the credit rating outlook for Spain to negative.
Looking ahead today, the news event that may have a very large impact on the EUR and its main currency pairs in today's trading is the German ZEW Economic Sentiment at 10:00 GMT. This report is very important and is likely to impact the EUR volatility. Traders should pay close attention to the market as there is an opportunity for traders to capitalize on the fluctuations which are likely to follow this release.