Hello Koala King and folks.
Good day to you!
European officials made comments with regards to the support of Greece and Greece’s Prime Minister met with President Obama in hope of solving the problem in Greece.
As a result, the value of the Euro increased, as investors are optimistic towards increased economic growth within Europe and towards improvement in the Greek deficit crisis.
However, upon a closer look at Greece, the country’s problems unlike some officials who said that it is improving, is still deteriorating. The current market conditions seems to suggest a wait as the lack of negative news seems unreal.
These days if you look at the various analysis, views are not the same as the past. While some views speak of the EUR/USD dropping to 1.23, previous opinions of the level of EUR/USD 1.45 are not as vocal now. At the peak of the economic crisis, government actions that took the path of changing the market saw the EUR/USD grew to 1.51. Henceforth, every time a horrific event occurred, presidents of central banks and governments worked together to prevent the collapse of the markets.
The issue now is of a different nature.
This time the problems are the governments. Who will help them? Will the governments solve their own problems? Is this the end of the EURO currency? Will credit grade securities will be reduced? Will the crisis spread?
These questions are crucial to all market actors. Investors, traders, institutions, etc.
Since the end of the financial year is in March, uncertainty and fear has the market’s main trend as apprehension and risk aversion. Once this is over and done with, we may see the continuance of an upside momentum for the EUR/USD.
While we may see upside pressures, the Forex market is unpredictable and hence a dip may occur too. Do not let the market make your day a day of suffering and always use a Stop Loss.
Trichet is going to say goodbye.
2010 is the last year for President Jean-Claude Trichet. After his 2 years presidential term of Europe’s central bank, we may see Mr. Alex Weber, the current head of the German Bundeswehr bank as the next likely candidate. He often comments after Mr. Trichet and has a large influence on financial markets as well.
Have a great weekend.
Masoud is a businessman and a Senior Koala at the Forex Factory Koala Thread.
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