EU Summit May Spark Another Flight to Safety -David Song, Currency Analyst at DailyFX

"Market sentiment firmed up on Tuesday as the People's Bank of China injected liquidity into the system and pledged to avert a banking crisis, but we may see a renewed flight to safety should the EU Summit in Brussels disappoint. As European policy makers look to recapitalize commercial banks through the European Stability Mechanism, the new measure may dampen speculation for additional monetary support, but we may see the EU struggle to meet on common ground and make an attempt to buy more time as the governments operating under the single currency struggle to get their house in order. As the group scales back its push for austerity, EU officials may become increasingly reliant on monetary support, and the central bank may face increased pressure to implement more non-standard measures as the region struggles to return to growth."