EURUSD and AUDUSD Under Pressure but Trend Difficult to Jump Start

In the wake of the 'no more QE' headlines from US and European officials last week, markets have greater freedom to follow their own speculative proclivities. That said, a round of normally combustible fundamental developments (downgrades, a fifth Euro Zone member asking for a bailout and a clear warning about financial stability by the BIS) did little to truly leverage momentum. Is this a sign that hope is once again playing a curb to speculative ambitions? Do the masses believe their is enough ambiguity to the EU Summit on Thursday and Friday that an improvement to global financial conditions is possible? We discuss the impact expectations for the week-end event risk can have on trading conditions as well as the big-ticket catalysts to watch for going forward.