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Speculators Increase Pressure on Euro

Discussion in 'Forex Daily News & Outlook' started by forextrends24, May 4, 2010.

  1. forextrends24

    forextrends24 New Member

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

    The Euro remained under pressure on Monday despite an announcement by Greece, the European Union and the International Monetary Fund that a 3-year bailout package has been reached which will provide as much as $146 billion for the ailing nation.

    The bailout agreement which was highly expected failed to restore confidence to the Euro, most likely because speculators still believe the sovereign debt problems in the Euro Zone are likely to spread to Spain, Portugal and Ireland.

    Each recent rally in the Euro has been met by more selling pressure which has triggered a break to a new low for the year. This pattern is expected to continue as the direction of the Euro is clearly in the hands of the shorts. Recently released Commodity Futures Trading Commission Commitment of Traders data shows that hedge funds and other large speculators are dictating the direction of this market. The report shows that these large traders increased net wagers on a Euro drop by 25% to 89,013 contracts in the week ended April 27th.

    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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