The European currency managed to improve its position against the dollar in the last six weeks after the extension of Greek’s debt and the falling of the borrowing costs for the euro zone countries. Analysts state that Euro is likely to gain more in yields on Spain and Italy’s bonds drop lower. The European currency increased with 0.2% to $1.3083, the highest level since the 22nd of October. Traders state that if the currency succeeds to break above the $1.3100 level, it can stop loss buy orders. The head of FX research at Commerzbank stated the following: “We have had a general upward trend in euro/dollar for quite a while and people are looking at news in the euro zone like the debt buyback by Greece.” Greece’s buyback exceeded the market expectations and improved the chances of cutting the debt and receiving other financial aid.
Although the dollar is considered a refuge in these times of financial Read more »