FX.co ★ Fundamental Analysis, December, 07 / 2011

Market's expectation regarding the situation in Europe is going through the summit on Thursday and Friday remain the leaders of the European Union.

These summits, the results are not dissimilar to that of other mass gatherings, and are full of good intentions, idioms and zero accomplishments, seems to give the old continent some air in your search for internal consensus.

What is abundantly clear is that a system of decision making involving 17 countries, and need unanimity, it is impossible to proceed.

It is even contradictory to think that Germany may have similar interests to Portugal, to name just one example. On the other hand, trying to discipline governments that have been stored for 10 years the slightest modesty in terms of expenditure, and their nations have borrowed to unbearable limits, is an impossible mission.

The extreme voluntarism, without action of any kind, it appears to the pompous announcement of the search for a common fiscal policy from here on out for members of the eurozone. But do not talk about what will be done to cope with what has happened, which is very complex.

So think ahead is fine if circumstances permit, but here it is calling into question the validity of the euro as euro itself moneda.Al not seem to worry too much what happens.

The single currency will not fall as might have happened in the past, in which, for reasons far less difficult than the actual number of cents a day lost to the dólar.De However, it is tangible the low to the Swiss franc, to which on the floor of 1.25 set by the Swiss National Bank for some time (the ceiling was 1.20), and to the British pound, against whom he knew to be at 0.99 in his prime.

Moreover, rising oil prices and the announcement of the Bank of Canada not to lower the interest rate (at 1% was), something expected but positive at the time we live, has given strength to the Loonie over the last 24 hours. Oil inventories in the U.S., at 10:30 Eastern, will give new Canadian currency movements, that seems to have hit a ceiling of 1.0070 short term just hours ago.

The other major market benchmark, or at least its spirit, gold behaves no clear trend in the short term. The Australian dollar continues its steps, and sought in the Asian session near 1.03, to give up then, in line with the rest of the hard currencies in its low against the dollar.

We do not expect major movements of major junctions during the American session, beyond the usual at the opening of the NYSE. Incidentally, the Dow Jones had a good closing Tuesday at 12,150 points, and their futures are close to that level within hours of login.