Posts Tagged: Greece

The euro became loose near a two-month low versus the greenback on Tuesday and with an outlook clouded by the Parliament of Greece that voted the steps of austerity needed to improve the situation of the country. Traders stated that the market was in a standby mode regarding the US presidential elections on Tuesday. Opinion polls concerning the elections stated the fact that the challenge between Barack Obama and Mitt Romney is very close, but president Obama has a small advantage in various states. The euro currency eased with 0.1% to $1.2788 and remained to a level of $1.2767 set by the trading platform of EBS and reached the lowest level in the last two months.

The latest decline forced the euro out of the $1.2800/3200 trading level gained since the middle of September. The support has become around $1.2741, a level that represented approximately 38% reversal of the euro’s July to September rally. The Parliament of Read more »

The Dow Jones FXCM Dollar Index has suffered a serious influence in the last five days. Risk trends have shown a little progress in the past session and the Fed announced that its MBS purchases will not increase. When analyzing the individual performances it can be observed the reasons why the dollar declined and why the immediate results are not to see the EUROUSD surge higher than 1.3000. The Dollar Index is composed of a balanced weighting of four different counterparts of the currency. The Dollar has managed to put on a modest gain on the day for the EUROUSD standards. This leads to the conclusion to a strengthened position of the dollar instead of a weakened one.

The fundamental care for the dollar refers to the general risk trends. The market shows extremely low rates and the near-zero yield on the US benchmark rates. The Forex-based FX VIX Index has a low level and it is unlikely Read more »

The previous week has been dominated by the risk aversion which started to show on the market due to the situation in Europe. After the resignation of the Greek Prime Minister, the crisis started to really spread towards Italy as well, not only at the financial level, but also at the political one. After the vote which indicated the fact that the Italian Prime Minister, Silvio Berlusconi, is not wanted by the Italian citizens and after the sell of the Italian 10-year bonds, the market started to be dominated by an increasing risk aversion which seemed to calm down just a little at the end of the week. Traders are very concerned by the financial situation in Greece, Italy, Spain and Portugal and by the spreading political crisis, especially as there are rumors according to which Angela Merkel seemed to discuss with the other European leaders the possibility of quitting the unique currency for the Eurozone.

The risk Read more »

Due to the fact that the Economic Situation in Europe has become worse and worse especially due to the fact that the crisis is now also political, not only financial, the Euro finds itself in a very bad situation, reaching the lowest level since the month of August 2010 against the US Dollar and the Japanese Yen and the lowest level since February against the Great Britain Pound. Traders’ concerns regarding the European sovereign debt crisis seem to grow on a daily basis, making the European currency fall more and more, despite its previous rally registered at the beginning of the month.

The yield of the Italian 10-year bonds has decreased by 7.48 percent yesterday, showing that the situation in Greece can and it is spreading. This has caused a very powerful reaction on the trading market as traders are now concerned with the situation in Spain and in Portugal. Moreover, the situation in Italy is becoming worse Read more »

Traders have finally had the chance to receive some good news on behalf of the European Union whose leaders have finally announced some of the decisions taken at the Group of Twenty summit. These decisions are intended to put an end to the sovereign debt crisis in Europe. The European leaders have decided that private bondholders are to take a nominal 50% cut on the Greek debt. By analyzing the reactions of the market, we can notice that everyone seems quite thrilled about this decision, at least for now. Of course, there are also lots of questions related to this decision which continue to be left unanswered and which will probably be responsible for the decrease of the value of the Euro in the period to come, but, for the moment, everyone seems rather happy with the way things turned out in the matter of the European sovereign debt crisis.

This has had an immediate impact on the Read more »

The Euro is faced with difficulties due to the sovereign debt crisis, which tends to become worse in the European Union. Even though the Euro has had a positive week till the moment when Fitch Rating has announced the decision of downgrading Italy and Spain’s credit ratings, the end of the week has brought problems to the currency, making it fall against its major counterparts.

The end of the week has brought the Euro in the situation of deleting all the gains it managed to gain against its major counterparts. These losses are due to the decision taken by Fitch Rating, that of downgrading the credit rating for Italy and Spain, decision which has caused a new wave of concerns among traders, who have been thus reminded that the sovereign debt problem in Europe continues to be a very important problem. Fitch took the decision of downgrading Italy’s credit rating from AA- to A+ and Spain’s credit Read more »

The Euro has been shaken by numerous problems in the last month. The situation in the Eurozone becomes worse each day and the Euro has problems holding on to its counterparts. The beginning of this month has turned out to be just as bad for the Euro as the previous month has been. This is due to the sovereign debt crisis and especially to the situation in Greece. The week to come may be one of the most important ones in the evolution of the European currency as it is expected for the situation in Greece to come to an end at the end of the week, most likely a bad one. Concerns have grown even more after the moment yesterday when it has been announced that Greece has not been able to meet its deficit limit. The country is likely to face default in the immediate period and this could trigger the Euro down with it. The Read more »

The global economic crisis continues to have great effects upon the trading market, influencing even the most powerful currencies around the world. Despite the few days of growths, most of the important currencies started to fall today as a result of the concerns related to the global economic crisis which continues to affect most of the world’s economies.

The Euro is one of the currencies which registered losses during today’s trading, especially against the Japanese Yen, against which the European currency fell till the point of reaching a 10-year low. The currency also decreased against the US Dollar and the Great Britain Pound. This negative evolution has been triggered by the news according to which Greece is not to reach its deficit target this year. The release of this news by the Greek officials, along with the discussions related to the possibility of more bailouts has brought up the subject of default once more. A Greek default Read more »

Despite the fact that the European debt crisis seems to get worse than usual, the European currency managed to grow a little based on the assumption that the sovereign debt crisis is to be contained. This is the reaction of the forex traders to the discussions had by the European leaders. There are numerous traders who have confidence in the European leaders and who think that all these problems are going to be solved.

At the moment, it does not seem to be any plans as to expand the EFSF, but the participants to the trading market are considering that the European leaders are to find a solution to the sovereign debt crisis and that this solution is to be found before the crisis brings down Italy, Spain and possibly France as well. It seems that, at this moment, there are numerous efforts made in order to require recapitalization for banks. There is also a great focus Read more »

The European currency started to rally during the previous week despite the bad situation in the European Union. By doing this, the currency has set the stage for volatility and strength for the week to come as well. At the middle of the previous week, the Euro/US Dollar FX Options and Futures Sentiment has reached the most bearish extremes in a long time, which point out to the fact that the trend may be headed higher during the days to come.

The EUR/USD pair is going to be more volatile in the days to come due to the German ZEW economic sentiment data and to the highly-anticipated US Federal Reserve interest rate decision. Nonetheless, unexpected developments may take place at any time due to Greece and to the fact that the debt crisis can become worse at any moment, without previous notice. This means that the Euro fundamentals are pointing towards troubles and towards further declines of Read more »