Tuesday, 6 Apr 2010

Greece Rescue Deal Hits the Euro Again

News headlines that the Greek government might look to exclude the IMF from its rescue plan took investors by surprise during today's trading. Investors were under the impression that the rescue plan for Greece was secured and agreed upon by the European Union, IMF and Greece. This again raises investor's concerns and the market responded by selling the EUR against all its counterparts.

At 18:00 GMT earlier today, the U.S. Fed FOMC, released the minutes from their last meeting. The minutes pointed to moderate economic expansion, supported by an increase in business investments and an increase in consumer spending. According to the report, employment would have picked up as well in the absence of snowstorms during February. Commodities such as Crude Oil and Gold remained high after the report was released.

After the minutes were published the EUR managed to gain back part of its daily losses, currently trading at 1.3393 against the greenback. The British pound was also affected by the minutes release, moving higher against the greenback after trading lower during most of today's trading, currently trading at 1.5276.