EUR/USD rose during the initial surge on Monday as traders got excited by the possibility of a fiscal union in the EU coming from the Merkel and Sarkozy meeting. The union is something that the markets seem to approve of, and the reaction was expected. However, the S&P ratings agency has put 15 EU countries on "credit watch negative", sending the pair down.
The EUR/GBP pair fell as a result as well, and in fact never really had the bounce that the EUR/USD pair did. This pair continues to consolidate between the 0.8650 and 0.8500 levels.
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