Forex online trading–European outlook

Forex online tradingForex online trading news start off in Greece, where Antonis Samaras, the conservative New Democracy leader whose party narrowly beat the radical left coalition in Saturday`s election has the gigantic task of forging a “national salvation” government in a time of crisis that “Greece has never seen before in its history”, according to Samaras himself.
Greece`s public opinion is torn between the election`s outcome. The new government “will honor all its commitments to the EU and will try its best to return credibility to Greece”, stated the newly elected party spokesperson. But an increasing number of well informed people are doubting that this level of debt can ever actually be repaid. By 2013, some analysts reckon, Greece will be borrowing money just to make interest payments alone, no capital repayments.
Still, the new party, urged by its European neighbors, is on its way to negotiate a government coalition with Pasok, the socialist party that came in third to win the majority of the Parliaments seats and get the austerity plan through.
The EUR/USD pair is losing the momentum it gained due to Greece`s decision to stay in the Euro zone as forex online trading attention shifts again to Spain`s direction, where bond yields remain at dangerous levels and the announced €100BN bailout might already be too small.
“Spain is being audited this week by private consultants Oliver Wyman and Roland Berger Strategy Consultants, but the preliminary reports that suggested the €100BN bailout mark might be falling short”, a forex online trading broker explained.
“Spain seems to be stuck in a vicious circle where the already deteriorated economy depends on the banks, which are dragging the government into more public spending cuts, which in turn deteriorate the economy even more”, concluded the forex expert.
EUR/USD climbed as high as 1.2748 following the Greek election results, but then retracted as forex online trading excitement dissipated. The current range is from 1.2587 to 1.2623, hitting the 1.2607 mark in the European session.
The euro crisis is acting as a drag on business and consumer confidence, but the Obama administration hailed the Greek election results as offering a glimpse of hope in the Eurozone debt crisis.
“I think the election in Greece indicates a positive prospect for not only them forming a government, but also them working constructively with their international partners in order to continue on the path of reform”, President Obama told reporters in the G20 summit being held in Mexico.
On Tuesday, the forex online trading market saw the highly regarded German ZEW Economic sentiment suffer a sharp decline to -16.9 points. EUR/USD traded around 1.26 before the publication and it is now failing below this level.