After a busy week, EUR/USD is steady in early Monday trading, ahead of a key Eurogroup meeting later today. The pair is trading just above the 1.33 level. US releases ended last week on a sour note, as consumer sentiment looked very weak. The US markets are closed today for Martin Luther King Day. In the Eurozone, German PPI, today's lone release, declined for a second straight month.
The Eurogroup of Eurozone finance ministers will meet on Monday for the first time in 2013. The main order of business will be a look at direct bank recapitalization, whereby the European Stability Mechanism, which is the Eurozone's emergency fund, would provide directly to banks, rather than to national governments. This is intended to replace the process whereby countries simply borrow more funds to bolster their ailing banks. However, there are deep divisions on the issue within the Eurozone, and Monday's talks with be preliminary in nature. The frontline members who are being touted for further aid include Spain, Cyprus and Greece.
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