Mid-Day Report: Skepticism Continues to Weigh on Euro

[Forex-Outlook]

German government approved the country's contribution of at least EUR 123b to the massive EUR 750b emergency funding packaged agreed by EU and IMF. But the news provide no support Euro as markets doubts that the package only postpones the debt crisis in Eurozone, rather than solves it. Investors are still concerned that while immediate default of Greece is avoided, new issues might arise as the huge fiscal deficits in the region continue. Euro is back pressing 1.27 level against dollar while major stock indices in Euro pare yesterday's gains. Nevertheless, we're not seeing strong enough momentum in dollar and yen to stage a breakout and hence, markets will possibly stay in range for a while first.

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