Friday, 26 Mar 2010

Greek Safety Net News Gives EUR A Bullish Session

The Euro began showing bullish signs last night, and has slowly continued its upward trend throughout today. This is largely due to the European Central Bank's, (ECB), decision to create a safety net for Greece. This safety net, a combination of IMF and Euro-zone loans in case of emergency, while not quite the bailout package investors were hoping for, is clearly a step in the right direction. Since 23:00 GMT last night, EUR/USD has increased over 100 pips to its current level of 1.3376. EUR/CHF, coming off of record lows reached earlier this week, shot up over 50 pips in the same amount of time. The pair is currently trading at 1.4302.

A relatively slow news day, will likely lead to low liquidity in the market place as we close out for the weekend. That being said, with the ECB President scheduled to speak at 16:00 GMT, the Euro may further extend its bullish session. Whether the latest news indicates a prolonged trend for the European currency is yet to be seen. What can be said with certainty though is that the closer the Greek deficit crisis is to being over, the better the Euro will perform in the forex marketplace.