EUR/USD: Euro is waiting for signals from Germany and France

The pair EUR/USD is traded downward at the Forex currency market on Tuesday morning, still staying close to the highs of three weeks, in advance of the meeting of Presidents of France and Germany who are going to discuss issues of financial stabilization.

By 9.20 MSK the Euro is at 1.4416 against yesterday’s closing level of 1.4443.
 
Expectations of the meeting where Sarkozy and Merkel are going to discuss and develop measures of financial stabilization in the region are favourable for the Euro. In addition market believes that idea of France about issue of Eurobonds, secured by 17 countries of the European Union can contribute to stability.  

Publication of the weak statistics this afternoon about the number of new construction sites in July can be unfavourable for  the USD today. In addition, agency Moody’s downgraded the forecast for growth in the real level of GDP in the U.S. to 2% in the second half of the year (previously: 3.5%) and lowered the forecast for U.S economic growth in 1012 to 3% (3.5% earlier).

Thus, traders have plenty matters to think over.

Most likely the pair EUR/USD will not go beyond the range of 1.4350-1.4500 at the trading session on Tuesday.