The leaders of the European Union had a long night, but it was eventually fruitful. The banks agreed on a 50% haircut on Greek debt. Reaching such an agreement was in the works. Will Portugal also get a haircut now? Bank recapitalization and a €1 trillion EFSF were also agreed, although the details are still to be seen. EUR-USD is climbing above 1.40 quite slowly. While this round number is watched by many, stronger resistance appears higher. Bank Recapitalization: This was already agreed on Sunday, and the sum is about €106 billion. More details are emerging and this is helpful. Declarations without details are much less effective. 50% Greek haircut: This was the maximum that France was willing to take. Germany wanted 60%. The banks offered 40%. While this half-half number seemed as the clear compromise, it took many long hours to strike a deal with the banks. The talks ended in the hide of the night in Brussels. This isn’t a 50% reduction on Greek debt. It’s only for the private sector. The official sector (EU, ECB, IMF) doesn’t participate. Is the debt pile sustainable now? This question remains open. EFSF €1 trillion: Part of the current EFSF fund will be leveraged by a “few-fold”. A €2 trillion figure would be more convincing in order to convince the markets that Spain and Italy are seriously ring-fenced against contagion. Italy pressed hard: The friends of the euro-zone’s third largest country pressed it to raise the retirement age in a move that angered many. Some progress was made there, although the reforms need to pass in the parliament. Dictations will likely meet opposition in Rome. Growth: Unfortunately this is still absent. Resistance for EUR/USD is at 1.4030, followed by 1.41 and 1.4160. Support is found at 1.3950, which was also the top of the 1.39-1.3950 range before the summit. For more on the euro, see the EUR/USD forecast. The euro climbed all the way from around 1.38 at the beginning of the summit. At first, it seemed that the summit was headed for a failure. Signs of a partial success got the pair back to the range, and the final deal is even better. This isn’t a full success, but more than expected, and this is enough to send the pair higher. A bigger EFSF, a bigger bank recapitalization and a haircut also for members of the official sector like the ECB would have made the plan more comprehensive, but given all the interests, this agreement isn’t bad. 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. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Forex Daily Outlook – October 27 2011 Anat Dror 11 years The leaders of the European Union had a long night, but it was eventually fruitful. The banks agreed on a 50% haircut on Greek debt. Reaching such an agreement was in the works. Will Portugal also get a haircut now? Bank recapitalization and a €1 trillion EFSF were also agreed, although the details are still to be seen. EUR-USD is climbing above 1.40 quite slowly. While this round number is watched by many, stronger resistance appears higher. Bank Recapitalization: This was already agreed on Sunday, and the sum is about €106 billion. More details are emerging and this is helpful.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.