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Euro finishes down but Off Low

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Mar 24, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    The EUR USD finished lower as speculation continued to grow that Greece would have to seek financial aid from the International Monetary Fund. The good news is France and Germany is behind such an agreement, thereby increasing the chances that the process of obtaining a loan may be expedited. In addition, once Greece obtains a viable financial agreement with the IMF, more European Union nations are likely to throw their financial support behind Greece.

    This news came late in the trading session and allowed the Euro to finish off its low on some light short-covering. At the start of today’s session, it was apparent that Greece Prime Minister Papadreou would leave this week’s European Union summit on March 25th and 26th without a financial aid deal. This meant that Greece would have to turn to the International Monetary Fund for aid if needed. This was being perceived negative to the Euro because it makes Europe appear weak for allowing one of its members to go out of the EU to seek financial help. Now that France and Germany are behind the move to get the IMF’s backing, it appears to be a cooperative agreement rather than a sporadic move.

    Although the market reacted with a short-covering rally on Tuesday, a financial aid agreement will be no guarantee of instant success for the Euro. Some investors do feel, however, that there are too many shorts in open positions to risk adding to positions at current price levels. This could mean a quick, sharp short-covering rally may take place if an amicable agreement is reached.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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