Euro zone leaders have still not reached an agreement on the much anticipated deal to try and reverse the spiraling debt crisis despite the summit today that is supposed to offer a definitive agreement.Talks to try and get emerging markets to lend a hand by buying European bonds have hit a snag. The market is already expecting a less than dovish outcome as a meeting of European finance ministers has been canceled which means that the anything from the leaders meeting will lack detail.There has also been a lot of division on how to tackle the Euro crisis issue between European leaders which further indicates that today's meeting may offer only a short term or weak solutions.This further exacerbates the problem.
However,despite the gloom being painted a show of commitment from the EU leaders may ignite a different spark which might rally the Euro higher.News of speculation that more stimulus might be forth coming for the US has also seen the market rally in favor of the Dollar. I will also be watching the Yen currency pairs are fears of a stronger Yen may prompt some action from the BOJ.
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