Euro Enjoys Bank Aid Plans, New Greek Assessment – Debt

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Some positive headlines regarding a bank aid plan and a sudden acknowledgement from Greece that it actually has money until mid-November managed to overcome some negative headlines.

It allowed EUR/USD to make a significant comeback and return to just where it closed on Friday. Here are 7 highlights:

  1. Greece suddenly realized that it has money until mid-November, just after the troika decision was delayed to that period of time.
  2. The Financial Times reports that the EU is working on a plan to bailout the plans. Both headlines fit perfectly into the talks of a Greek default at the beginning of November, and a preparation till then.
  3. The French and Belgian governments and central banks pledged to back Dexia, declaring that deposits are safe.
  4. Italy was significantly downgraded by Moody’s – by 3 notches. The statement includes wording about further “substantial” downgrades on the way.
  5. S&P left Portugal’s credit rating unchanged, but the outlook remains negative.
  6. German chancellor Merkel warns of dangers of a Greek default.
  7. Ben Bernanke warns of the dangers of a disorderly Greek default.
The timetable is more flexible now that Greece can take its time until mid November. The focus returns to the banks.
EUR/USD fell as low as 1.3144, setting a new 8 month low, but bounced very nicely. 1.3360 serves as a strong cap – this is the area where the pair closed on Friday.
For more events, lines and everything EUR/USD, see the euro dollar forecast.
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About Author

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.

13 Comments

  1. EZE EMMANUEL on

    hello
    thanks for all your insights on fundamental and technical analysis on the market
    please i would like to know where you get all your breaking news

    thanks

  2. Thanks! I have many sources that are available on the web, and I often link to them. Anyway, also Forex Crunch is a source!

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