Archive for September, 2012

Euro News – Greek Bailout Unlikely as Country’s Deepening Financial Crises Continues

As Greece continues to fail in securing its next ECB bailout, the country’s financial crises only looks set to deepen.

The Euro, which has pared the overnight advance to 1.3046, is likely to face even more near-term headwinds in light of the continuing Greek financial crises. The ECB, European Union and the IMF (Troika), will re-assess Greece’s financial commitments in a week’s time, within which the 11.6B austerity programme – which many feel will not be enough -will remain under review. On the other hand, recent news that Greece may plan on introducing additional taxes is thought could raise an additional 2B in EUR.

Online forex traders will want to take note that President Axel Weber, former president of Bundesbank, has expressed concerns that the ECB may only simply be (more…)

Euro rises to a 4-month high against the Dollar as the German Constitutional Court Approves of a multi-billion Euro Rescue Plan

The German constitutional court on 12 September, 2012 approved of the German government’s participation in the Euro zone’s latest rescue plan, pushing the Euro to a 4-month high against the dollar and other currencies. The Court allowed the government to contribute as much as €190 billion Euro to the rescue plan without having to take permission from the German parliament. These terms buoyed the sentiments in the forex market, which was expecting tougher terms from the Court.

German court verdict supporting EURO raise

Within hours of the Courts verdict, the Euro rose 0.35% against the US dollar to close at 1.2899. It continued to rise on 13th September, when it closed at 1.2985. (more…)

The Euro weakened on Tuesday, falling 0.2% against the dollar from the two month high it reached on 31st August, which had seen some investors optimistically forecasting that the currency was rallying.

This came after the European Central Bank (ECB) stated that they will be prepared to buy bonds with maturities of up to 3 years. Despite investors welcoming this news, the fall reflects their fears that it may not be enough to contain the European debt crisis.
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