The EUR/USD is heading towards 1.3200 on Interbank after closing at 1.3230 Friday, as the FX market is having a hard time to find reasons to buy the EUR. EU leader will gather on Thursday and Friday to agree on a permanent-crisis-resolution after the groundwork was agreed around the same time the Irish bailout was agreed to. According to Reuters, the EU Summit later in the week will make a few limited treaty changes that will allow the mechanism to start functioning in 2013. Germany" Finance Minister Schaeuble told German tabloid Bild that Germany might be open to closer fiscal union by EU states at some stage, but repeated his opposition to the issuance of common euro zone bonds. Irelands Parliament will vote on the 85 BLN EUR EU/IMF aid package on Wednesday (Dec 15) and the main opposition party Fine Gael have come out and said they will vote no. A government minister said in the weekend the vote will pass without the opposition.
Strong reports of good buying interest in the EUR/USD around 1.3175 - with sovereign names in the buying mix. Stops are eyed below 1.3240. Sellers are lined up between 1.3280 and 1.3330.
