July 31, 2011
Greek Debt Crisis Keeps Euro in Volatile Territory
The Euro has been volatile in recent forex trading activity, it fell against the dollar and hit a record low against the Swiss franc on concerns that the euro-zone debt crisis would worsen before rallying on hopes euro zone leaders would reach a deal to ease Greece’s debt burden.
It continued to rally after Euro zone officials agreed on measures to solve Greece’s debt troubles, easing fears that the country’s debt crisis would spread, before slipping against the dollar as investors focused on how the second rescue package for Greece will be implemented. Contracts for Difference analysts highlighted the risks to the deal being implemented quickly and questions over long-term debt sustainability
While a stalemate in Washington over raising the nation’s $14.3 trillion borrowing limit was also high on investors’ worry list, most were banking that a deal will be reached. That helped support the dollar against major currencies.
By contrast, in Europe, anxiety over a Greek default and contagion risks caused Italian and Spanish bond yields to rise sharply and the cost of insuring peripheral eurozone debt against default soared to record highs. Italian and Spanish bonds jumped above 6% on fears of a potential Greek default
Despite the fact that stock indices rallied last week there’s the possibility that a resistance barrier may be hit again.
At present stock market indices have stalled, hitting a secondary resistance on the up-side. However the intermediate term outlook remains uncertain as both the United Kingdom & American stock market indices are stuck in a range.
Contracts for Difference (CFDs) and Spread Trading are both margined investment formats, they carry high levels of risk. Losses can exceed the initial amount you invested. You should always invest using capital that you can afford to lose; before making any trades make sure you recognise the risk. Note that CFDs and Spread Trading may not always be suited to your investment needs; where appropriate obtain impartial trading guidance.
Filed by neville1way at 2:12 pm under Uncategorized
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