EUR

EU bank stress tests create greater uncertainty due to their suspicious leniency,

That would benefit safe haven currencies like the USD, JPY, and to a lesser extent, the CHF

Upward momentum and lack of negative news might allow risk assets some near term upside, but the added uncertainty about EU banks from the test results will need to be priced in at some point soon, especially if risk assets approach stronger resistance.

Positive US earnings season already priced in, thus its influence will either fade if good, or boost the USD if the tone turns more disappointing and hurts risk appetite.

Chinese banks that made loans to government building authorities for new projects may lose 23% of funds loaned per a Bloomberg report.

Fridays advanced US Q2 GDP is the major scheduled event for the USD, and could either confirm the picture of slowing growth or provide relief from the prevailing pessimism

Risk assets are at or near strong multi-month resistance. If that strong resistance holds, the USD is likely to benefit as a safe haven currency.

Struggling US economy could limit USD gains despite declining risk appetite. USD needs improving fundamentals relative to others, especially the EUR, to sustain a rally.

Slowing EUR short covering means EUR gains must come on continued rising risk appetite and/or fundamental improvements.

The above comments about the USD apply with the reverse, bearish affect on the Euro.

the North-korean Crisis can see US Dollar rising againsy major currencies EUR can drop 200pips if Asian trade does see yen upside against EUR
now this is surely going to be intra-day volatality
EUR will retest 13030 levels this week

i am further somewhat concerned about after effects of the bank stress test . First the capital quote of german banks have dropped dramatically , for ex. for Deutsche Bank from 12.6% in 2009 to 9.7 % as stress test result, second only one Greek bank failed. That's implausible.
Some european experts warned of a "marketing event" that is supposed to paint an overly bright picture, with respect to results for Greece and Spain.

Hi Catnip, is the situation that serious for such behavious ?

hihihi
just kidding