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Report that Germany May Buy Greek Bonds Boosts EUR USD

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Feb 26, 2010.

  1. forextrends24

    forextrends24 New Member

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

    The Euro rallied on Friday after Bloomberg reported that Germany may buy Greek bonds. Shorts read this as a potential vote of confidence for Greece and used the news as an excuse to cover positions. The strong rally put the EUR USD in a position to turn the main trend to up on a rally through the last main top at 1.3692.

    Despite a rise in Fourth Quarter GDP, the GBP USD finished lower on Friday, but off its low. Friday’s action was an indication of just how weak the U.K. economy is. Traders still feel economic problems, political woes and the possibility of more quantitative easing by the Bank of England may be too much to overcome in the short run. The weak close put this market slightly under a key 50% level at 1.5271.

    Greater demand for higher risk assets helped to pressure the USD JPY, but the break stalled following a test of an uptrending Gann angle at 88.77. This week’s action indicates that the stock market rally and demand for commodities is still alive which could pressure the USD JPY further. The current administration in Japan is not expected to intervene unless they feel the current strength in the Japanese Yen is being triggered by speculation and volatility. Look for an acceleration to the downside if the main bottom at 88.55 and the .618 level at 88.24 fail to hold on this current break.

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

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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