Forex online trading week is seeing the dollar regain part of the lost ground against some of its currency rivals, especially the euro, following market euphoria the previous week after the Fed’s Quantitative Easing release.
The euro, which had hit a solid four-month high on Friday, lost some of its gains as London markets opened, slipping 0.1 percent to $1.3122.
Forex online trading analysts were hesitant about the current strength of the euro, with Spain and Italy bailout request delays having an impact on the single currency.
In effect, debt-crippled European countries are looking for ways to fix their financial systems without having to endure the burden of more austerity measures and economic conditions that hurt their growth and their people.
But laying the groundwork for a satisfactory bailout plan has proven to be more difficult than expected, as finance ministers from the European Union have not yet found the consensus on which to establish viable bailout mechanisms.
Although the European Central Bank’s (ECB) recent announcement of a program for buying the government bonds of troubled countries brought some forex online trading market steadiness, the European Commission’s proposal to create a single regulator under the Central Bank’s supervision to oversee the euro zone’s 6000 banks was the straw that brought some disagreements between euro financial authorities.
In the meantime, Spain is enjoying lower yields and will test the markets on a bond auction round on Thursday, but forex online trading specialists know that Spain’s financial problems cannot just be swept under the carpet, and are expecting an official bailout request.
Greece is also experiencing somewhat of a break, but more on time that on money. Various EU officials have hinted flexibility regarding Greece’s schedule, stressing it doesn’t mean more money.
“The eurozone is more secure than it was six months ago”, said Pierre Muscovici, France’s finance minister.
“Bank in mid-March, Greece had just hammered together the details of the bond-swap deal in which private investors wrote of tens of billions of euros. Since then we have had two Greek elections, a summit where leaders agreed on banking union and the ECB’s new OMT program. These initiatives are building blocks in a more stable currency union – but there is still so much more to do”, continued Muscovici.
Muscovici was also specific on Spain’s situation, saying that “we don’t decide for the Spanish Government”.
Still, Spain’s situation received a lot of tweet-reactions, most of them filled with sarcasm, as to when will the Spanish government decide to take action on an already evident move.