Thursday, 11 Feb 2010

EU Summit Fails To Comfort Investors Leading to Euro Drop

Following a European Union Summit today, which was initially designed to come up with a way to bailout debt-strapped Greece, the Euro fell after investors were not reassured by the results of the meeting. Investors were watching the meeting fairly closely for any concrete plans to help Greece and thereby boost the Euro. Instead, the summit only provided vague generalizations about the EU plan to help each of its nations. EUR/USD fell dramatically as a result, approaching the 8 1/2 month lows reached last week. Currently the pair is trading at around the 1.3685 level.

In other news, the Australian Dollar made some fairly impressive gains today after an unemployment report showed Australia with its highest rate of employment in almost a year. AUD/USD rose dramatically following the report, and is currently trading around the 0.8910 level. Tomorrow, traders will want to pay attention to a batch of U.S. data, including the Core Retail Sales Report. If the figures come in as expected, USD may have a profitable end of the week.