The Greek bailout agreement
In the latest round of online Forex trading news, it seems that the bears still have a strong hold over the euro.
It should be no surprise that Greece has played a central role in this recent doom and gloom.
As their government is now hinting (not so subtly) that they wish to renegotiate the terms of their previous bailout, rumours are spreading that the stability of the European Union may once again come into question.
It is being reported that Greek ministers may with to overhaul no less than 30 per cent of their existing bailout agreement. This is already seen to be facing stiff opposition within the ECB and in particular, with German finance ministers. Rejecting the so-called “troika”, Greece is now hoping that upcoming meetings with European officials will cause an agreement to be reached in regards to this recent impasse.
However, online Forex traders are already seeing troubling times ahead. Their main concern (as well as the concern of average citizens) is the example that Greece may set. With parties such as the “Podemos” campaign (a close ally of Syriza) gaining momentum in Spain, many involved with trading wonder if such a policy could eventually surface within other Mediterranean countries. Thus, the medium-term outlook for the euro remains dim.
This still may be an opportunity for online Forex traders to take advantage of such low values; assuming that they are willing to hold for an undetermined amount of time. One of the only silver linings is that as the euro is much cheaper in relation to the dollar and the British pound, exports may slightly rise. Still, the looming shadow of Greek debt and their rather hard-line approach is causing some investors to watch and wait as opposed to becoming involved before all of the proverbial “chips” fall in the near future.
