Tuesday, 4 May 2010

Greek Bailout Plan fails to boost the EUR

Despite the passage of the Greek bailout plan over the weekend the EUR continues to decline this week as the passage of the package fails to provide support as considerable doubt remains over whether the Greek government will be able to implement the harsh cuts in spending that are required by the deal.

The EUR is currently down at $1.3090 from $1.3191 late Monday in New York. The common currency is also down at ¥123.85 from ¥124.80. The Dollar is relatively unchanged at ¥94.48. The Pound tumbled to $1.5184 from $1.5249 as a possibility of a hung parliament intensifies.

Oil dropped below $85 a barrel, snapping a four-day rally, ahead of the release of the U.S. crude inventories tomorrow and as investors took profits after Oil yesterday hit its highest level since the beginning of the recession.