Monday, 22 Mar 2010

Euro Recovers on Bailout Speculations for Greece

The Euro started this week's trading session at the same direction it ended last week - downward. By noon (GMT) today, the EUR/USD fell to the 1.3460 level, marking a 3-weeks low, and only 30 pips above a year-low. However as the trading day progressed the Euro rebounded against the Dollar, and currently the pair is trading at the 1.3555 level.

The Euro recovered today on speculations that the Euro-Zone will propose a rescue plan for the Greek economy. European leaders have managed to relieve concerns that they were unprepared to aid Greece. This has increased demand for higher-yielding assets such as the Euro.

Looking ahead to tomorrow, many interesting economic publications are expected from the U.S. and the Euro-Zone. Traders are advised to pay special attention to the U.S. Existing Home Sales. If the report will show that the housing sector in the U.S. continued to recover on February, the Dollar is likely to strengthen as a result.