Euro Cannot Find Bottom – Debt Crisis Recap – October 3
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Euro Cannot Find Bottom – Debt Crisis Recap – October 3

The European debt crisis has accelerated at the wake of the new quarter. Here is a recap of all the latest news and the next critical known events.  

EUR/USD plunged by around 200 pips at the end of a full global trading bad news continued pouring from the old continent. Here are 8 highlights:

  1. Report: Greek prime minister considers quitting.
  2. French-Belgian bank Dexia is in danger of bankruptcy. This large bank might have a leverage rate  as high as  73:1 according to some calculations. Even more conservative numbers show that the situation is dire.
  3. No agreement on next tranche of Greek aid meeting of European finance ministers.
  4. Greek government offered a new budget for 2011 and 2012. Despite austerity measures, even the best promises fail to keep up with the plan the country committed to.
  5. Leveraging of the EFSF bailout fund strictly denied across the continent. This tool could be used to defend Italy and Spain.
  6. A member in Germany’s ruling party says that Greece is bankrupt.
  7. Slovak finance minister suggests that the continent should  prepare for a Greek default.
  8. Slovakia has yet to vote on the July 21 decisions regarding the EFSF – powers to help banks and buy peripheral bonds.
  • Upcoming weekend: High level talks in Europe and EU / ECB / IMF troika set to conclude talks on Greece.
  • October 11th: Slovak parliament is set to approve new EFSF powers. No majority yet.
  • October 13th: Greece hopes that the next tranche of aid will be approved by then.
  • October 14th: Estimation as to when Greece runs out of money.
At 1.3170, EUR/USD is under previous support at 1.3180, after losing 1.3250 too easily. Next support is 1.3080. 1.3180 turns into minor resistance.
For more on EUR/USD, see the euro dollar forecast.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.