Monday, 22 Mar 2010

Euro Still Being Weighed Down Due to Greek Concerns

A slow news day has caused the market place to see low volatility, even as currency pairs like EUR/USD and GBP/USD has been fluctuating somewhat erratically. The Euro, weakened following fresh reports about German reluctance regarding a Greek bailout, dropped to a near 3-week low against the greenback. The pair, currently trading around 1.3525, may drop well below the 1.3500 level in the coming days. The British Pound, already trading at near record lows, fell even further against the Dollar today. The pair, currently trading around 1.5000, has fallen almost 150 pips since Friday.

Traders will want to pay attention to speeches from the presidents of the European Central Bank and the Bank of England, both scheduled at 15:30 GMT today. Both speeches are likely to impact their respective currencies, especially if they revolve around any news regarding Greece. While most analysts are not predicting any major gains for the Euro and Pound, volatility may occur.