Following the haircut forced upon bondholders of the Anglo-Irish bank, also the Bank of Ireland is announcing “haircuts” or burden sharing if you wish. Tracy Alloway reports about this development, that isn’t too good for the Euro, even if it’s a smoother razor is used. Read it here.
This is not the first haircut for an Irish bank, and unfortunately not the last. On November 26th, talks about burden sharing of senior debt holders strengthened, but after the deal was cut between the EU / IMF delegation and the Irish government, it became clear again that senior bondholders (contrary to junior ones) were not to be touched by any scissors.
EUR/USD is experiencing choppy trading in a narrow range, now at 1.3238, between 1.32 and 1.3267. For more technical levels and an outlook for the Euro, see the EUR/USD forecast.