Euro Continues to Struggle as Greece Concerns Drag On: Currency Trading News
The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.
Less than five hours into Wednesday’s session we’re already seeing some interesting trends emerging.
Firstly, there is a general flight away from the ‘risky’ currencies of the Australian Dollar, Euro and Pound and into the ’safer’ currencies of the US Dollar and Japanese Yen.
So far the biggest faller is the EUR/USD which is very close to breaking through to fresh new lows for 2010.
The Greek saga has rumbled on without resolution and the latest news hasn’t been received well by markets.
Apparently Germany and France are pushing for an IMF solution rather than a Europe wide solution which has caused some to question the strength of the Eurozone unity.
However, things are unlikely to stay as they are for long with a number of high profile economic announcements due today.
Impacting the Euro, we have a raft of European, French & German Manufacturing and services data released from 08.00 to 09.00 with European industrial new orders at 10.00.
Alongside this there is the continuing European summit on Greece which creates a potential minefield of unexpected announcements throughout the day.
At 12.30 trading floors will be watching the UK budget announcement very closely. It’s no exaggeration to say that it is one of the most important budgets for decades.
It may be best to let the initial reaction to the budget settle in before placing any trades on the GBP/USD or GBP/JPY.
What the government thinks voters want to hear and what the markets want to see are two very different things. The Pound could be very volatile in the short term as traders weigh up the impact of the budget on the UK economy and the outcome for the next general election.
In addition to this, we have US durable goods orders at 12.30 and new home sales at 14.00.
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