Greece: Out of the Woods?
All eyes have been understandably focused on Greece during the past week. What appeared to be a rather tenuous bailout offer has been accepted by the Greek parliament and pushed through at the eleventh hour by the European Union. While the massive €80 billion euros required to ease the financial tensions and imbue liquidity into the Greek economy may be a welcome development, many investors are still wary in regards of the long-term damage that could have already been done to the euro as a whole.
Lost Confidence?
Some point out that this latest monetary package will still not be enough to stave off the long-term Greek debt. In other words, insolvency and an exit from the Eurozone may have been delayed as opposed to averted. Others are concerned that a great deal of investor confidence has been lost. Should these reforms fail to take hold, there is a very real possibility that other members of the EU such as Spain and Portugal could see their economies affected as investors pull out in search of a safe haven. These factors have been obvious within the world of online Forex trading.
Time to Buy or to Wait?
Some online Forex traders are counting on the euro weathering the storm and rising back to previous values. Still, this somewhat bullish stance has not been taken by all. Many Forex brokers have instead adopted the “watch and wait” policy. Until there are clear indications that the risk of a Grexit as well as a possible contagion have been reduced, it is likely that we will not see too much movement either way within the online Forex trading community.
Having endured what has been called the most profound financial crisis since the inception of the Eurozone, it will be interesting to see what the weeks ahead will have in store.
