Merkozy Meeting Lifts the Euro, Tax Cuts Lift the Real

European leaders huddle and the euro lifts - it's time for your FX Fix.

Business surveys suggest the economic contraction in the euro zone could be worse than expected. [CNBC]

French President Nicolas Sarkozy and German Chancellor Angela Merkel are meeting on the debt crisis, giving the euro a lift. [marketwatch.com]

Hopes for an end to the debt crisis lifted risk appetite and weighed on the dollar. [moneycontrol.com]

Italian Prime Minister Mario Monti will present to Parliament plans for tax hikes and spending cuts, trying to end Italy's budget crisis. [CNN]

The Brazilian real got a lift from tax cuts announced last week and hopes for a resolution to the European debt crisis. [WSJ]

Forex traders are bracing for a volatile year-end after indications that numerous big investors already closed their forex books for 2011, reducing market volume. [FT]

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