Forex online trading news are witnessing market volatility due to the euro’s constant ups and downs that have brokers puzzled over how the Eurozone’s debt crisis will develop and if the continent’s most important institutions will manage to emerge stronger from it.
Forex online trading news are witnessing market volatility due to the euro’s constant ups and downs that have brokers puzzled over how the Eurozone’s debt crisis will develop and if the continent’s most important institutions will manage to emerge stronger from it.This week will prove crucial for the Eurozone’s future and euro market behavior, as regional leaders will meet to discuss Greece’s fiscal adjustment program and Spain’s debt bond auction. In effect, The euro surged on Tuesday, pushing back through the $1.2468 level against the dollar and strengthening 0.9 percent to reach the 98.95 level against the yen, rising to a six-week high before this week’s meeting, amid optimism that the European Central Bank will step in to stabilize peripheral bond markets. “Debt-crisis developments have been enough to give the euro a bit of a pop”, said Brian Kim, a currency strategist at the Royal Bank of Scotland Group Plc in Stamford, Connecticut. “The headlines we have been seeing in terms of what may happen –concessions are possible- are giving people a little bit of a boost”, concluded Kim. One of these forex online trading headlines is brought by the possible concessions for Greece made by German chancellor Angela Merkel’s party, “so long as the Prime Minister Antonis Samaras shows a willingness to meet the main targets set out in his country’s bailout program.” Samaras will travel to Berlin and Paris on August 24th and 25th, after French president Francois Hollande and Merkel meet in the German capital on August 23rd and discuss a request by Samaras for a two-year extension to the indebted nation’s fiscal adjustment program. The other headline comes from a report that states that the European Central Bank (ECB) will set a cap on bond yields, amid an expected Spanish aid request. “The fact is that we and the markets expect the ECB to intervene in the secondary market, whenever there is a Spanish request for assistance”, said Lloyds Bank Wholesale Banking & Markets. In effect, Spain may be forced to follow Greece, Portugal and Ireland and seek emergency funding from international lenders. Forex online trading markets are expecting a considerable amount of help, on top of the €100 billion Spain has already received.The hurdles are still high, but European leaders seem to be working towards more positive forex online trading results. According to Callum Henderson, global head of currency research at Stanford Chartered Pic in Singapore, “this is a period of calm before a resumption of the bear trend for the euro”. “Europe`s common currency has advanced 0.6 percent over the past month, still, it has weakened 12 percent against the dollar over the past year, so we are going to have to wait for the latest developments”, concluded Henderson.