EUR/USD Overview
The leader of the euro finance ministers, Jean Claude Juncker reassured the markets yesterday by saying ‘there is no doubt’ that Greece will get the approval for its bailout funds later in the week. Consequently, the single currency enjoyed a slight rebound after Friday’s sharp sell off, gaining 26 pips to $1.3147. After rallying to nearly $1.35 from the beginning of the year, the euro is now ranging within $1.3100 – $1.3300 as the short term bias seems to turn sideways.
EUR/USD Overview
Despite last week’s liquidity operation by the European Central Bank and the signing of a new fiscal pact, there seems to be further cracks in some of the members’ budget targets. Countries like Spain and Netherlands already announced the possibility of more austerity measures to keep deficits under control. In addition, Germany, Europe’s biggest economy saw its retail sales declining 1.6%, adding extra pressure on the single currency. Meanwhile, echoes of Ben Bernanke’s testimony to Congress were still sending investors into the greenback. So, little surprise to see the EUR/USD pair continuing its plunge, losing 112 pips to $1.3196.
EUR/USD Overview
The early plunge in the single currency against the US dollar was triggered by reports in the media that Greek Prime Minister Lucas Papademos failed to strike a deal with political leaders over spending cuts and lowering the minimum wage. Sensing the danger and to save the day, Chancellor Angela Merkel went on German television saying ‘the EU cannot accept a Greek bankruptcy’. The comment reversed the trend and the euro closed 36 pips higher at $1.3130. So, this game of pushing and pulling goes on but the rally which started mid January seems to be stalling.
EUR/USD Overview
A stalemate regarding Greece’s attempt to strike a deal with private bondholders reignited fears over the stability of the euro zone and sent investors out of the single currency. There were also reports of EU leaders getting increasingly frustrated about the pace of reforms in Greece and also Portugal. So even with government yields in Spain and Italy falling recently, the euro lost 70 pips versus the US dollar to $1.3143. As many now see the euro zone economy slipping into recession there’s growing possibility the EU officials assembled in Brussels will step up their efforts, urging Greece to deliver a solution.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_special.gif)
