Forex Online trading – Spanish bailout

Forex Online tradingForex Online trading opens this week with news coming, once again, from Europe. One of the most traded pairs, the EUR/USD, will suffer a recovery from recent weeks´ performance, as the European Union decided on a Spanish Bailout worth up to €100Bn.
This move could be cheered up by markets, as expected. After the announcement, the pair opened the week with an impressive weekend gap. Following the initial jump, the pair is now below the critical level that separated ranges in recent weeks.
The Forex online trading EUR/USD pair started the week by trading between 1.24 and 1.2540. It made a slight improvement but couldn´t make a move above the all-important 1.2624 line. It then lost the high range and eventually closed at 1.2513. This broke a steep downtrend channel that came on from prior weeks.
Still, the upward trend is not expected to last long. Some doubts still permeate the Spanish bailout announcement. Most analysts agree the measure lacks details as there is still a lot of information that has not seen the air regarding the Euro Zone move and the conditions Spain will have to endure to face such financial aid, as well as the timing, which experts see it as a move intended to contain the fallout from the Greek elections, on June 17th.
In effect, the markets might be looking up but the financial world has become cynical and dismissive, the result of three years of ongoing crisis of confidence in the Euro. First Greece, then Ireland and Portugal, what will come next, Italy?
That is a common complaint in the current Forex online trading market. Brokers don´t forget that prior bailouts have come with political strings attached including painful pensions and tax and labor reforms that have actually accentuated the problem.
The Greek election will also have a definite place in the week´s most important forex online trading news, as Greek citizens will choose between continuing the current path of austerity and obeying international creditors or choosing a different path of abandoning the Euro. Still, it is too soon to bet on any outcome, as virtually no one knows what the results might be.
“It´s a victory for the Euro”, said Mariano Rajoy, Spanish Prime Minister, as news of the bailout became official. But newspapers and the general public apparently do not agree, with “bailout” written in all cover pages of the three biggest newspapers in Spain and with #cowardrajoy as a popular trending topic. People do not see it as a simple “loan”, as Rajoy put it, and they expect to endure some pretty tough economic measures.
“It´s going to be pretty active in the weeks ahead”, said a Forex online trading insider, regarding Europe´s decisive future. “We expect ranges to change as the future of the Euro is decided, but we don´t count on long term measures yet”.