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Week Ends with Forex Traders Still Concerned about Greece Debt Situation

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Feb 6, 2010.

  1. forextrends24

    forextrends24 New Member

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

    The trading week ended with traders still fearing a widening and deepening debt situation in the Euro Region. Optimistic traders are looking for some solution to be reached by either a “pseudo-bailout” by the European Central Bank or European Union. Legally, the ECB or EU cannot offer an outright bailout package so they may have to figure out a way to get around this restriction.

    The International Monetary Fund was mentioned as a suitor but it was awfully quiet this week. Pessimistic traders are looking for the situation to escalate to Portugal and Spain, putting additional pressure on the Euro in the short-run. If a solution is reached over the week-end, then the Euro is likely to open sharply higher as shorts will pay anything to cover positions.

    The Dollar had a volatile day before settling sharply higher for the week. Early in the session, the U.S government reported that another 20,000 jobs were lost last month. Expectations were for a 25,000 to 40,000 increase. A surprise drop in the unemployment rate from 10.0% o 9.7% shocked the market, triggering a wild intraday move.

    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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