10/02/2012 The Greek tragedy is not over yet
EUR/USD
The story with Greece’s adoption of the austerity package in exchange for private debt restructuring and another aid package from the EU/IMF has virtually wearied everyone. And formally this story is not over yet. As it turned out, the Greek Prime Minister negotiated the details of austerity measures with representatives of the troika, who said they first wanted to see the legislative approval of saving measures and only then would consider the aid payment. Of course, the last point will be mainly formal and therefore quick to settle. It is to take place at the upcoming weekend. However, the troika’s fears are not at all groundless. Actually, Greece is on the threshold of elections, which will be held already in April. At such a moment none of the parties wants to be the one to promote tough economy. The meeting of the ECB’s governing council was also of great interest for the markets. There Draghi stated that the Bank plans to ease its collateral rules as, in their opinion, it is sure to help small banks and then to revive lending to households and companies. The euro rewrote the local maximum yesterday, having risen to 1.3320, but then sank to Thursday’s opening levels on the profit fixations in the stock markets. Now it is still holding there, around 1.3260.
GBP/USD
The Bank of England met expectations of the market, having extended QE by 50 billion pounds up to 325 bln...
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