Forex online trading markets saw how the euro is still high against its major currency counterparts, especially after important European economic data showed better than expected perspectives and relevant news are coming out this week.
Forex online trading markets saw how the euro is still high against its major currency counterparts, especially after important European economic data showed better than expected perspectives and relevant news are coming out this week. Now we will have to wait and see if the EUR/USD pair can handle this steady trend, after Greek Prime Minister Antonis Samaras returned home empty-handed from his meeting with German chancellor Angela Merkel and France president Francois Hollande. In effect, the German chancellor rejected Samara’s pleas for a two-year repayment extension after receiving backing from president Hollande. Merkel said it was up to the people of Greece to show they can implement austerity measures agreed with Brussels and the International Monetary Fund (IMF), before any further discussion could take place about the latest €130bn debt package. She left a door open for an extension though, calling for a commitment to wait for a report next month on the progress made by Athens on the austerity measures, and also for the outcome of the talks between Samaras and the Troika of the representatives from the IMF, Brussels and the European Central Bank, which will surely have a stir on forex online trading markets. On the other hand, the German climate index, based on a survey of 7,000 executives and released by the Ifo Institute in Munich, fell for a fourth straight month in August but had little impact on the forex online trading EUR/USD pair. The euro suffered almost no change against the dollar, going from $1.2512 on Aug 24th to 1.2523 at 9 am, London time and from 98.44 yen to 98.52. Sticking to Germany, German central bank boss Jens Weidmann said increasing lending to struggling eurozone members could become “addictive as a drug”. “Such a policy is for me close to state financing via the printing press. We should not underestimate the risk that central bank financing can become addictive as a drug”. Wiedmann is referring to printing billions of euros and offering them at low interest rates to indebted countries. Spain is only days away from announcing the details of its €100bn bank bailout which uses cheap funds from Brussels to underwrite its struggling banking sector. As expected by forex online trading experts, the European debt crisis is damping economic outlook all over the world. The current faltering demand from Europe to Asian markets is taking its toll in much expected economic rebounds. China is failing to secure its economic figures while Japan fears for an economy contraction this quarter. Stateside, Fed’s purchase of bonds to stimulate the economy will have a revision this week, as a meeting on Wednesday will take place to discuss further monetary action in the U.S.