Monday, 15 Mar 2010

Euro Erases Profits As Euro-Zone Leaders Fail To Provide Rescue Plan for Greece

After a week of consecutive drops, the Dollar rose against the Euro today. The EUR/USD pair dropped about 100 pips and is currently trading around the 1.3670 level. The Dollar also saw a bullish trend against the Pound today.

The Euro dropped against the Dollar today, as European finance ministers failed to agree on a bailout plan for Greece. After repetitive speculations that the Euro-Zone will aid risk, the inability to confirm a final plan has lowered risk-appetite, and turned investors to look for safer assets such as the Dollar and the Yen. It currently seems that until the Euro-Zone leaders will manage to agree on the needed aid for Greece, the Euro will have the potential to drop further.

Looking ahead to tomorrow, several important news publications are expected from the U.S. and the Euro-Zone. Traders are advised to follow the German Economic Sentiment and the U.S. Federal Funds Rate, as these publications are likely to have the largest impact on the market tomorrow.