The euro received a positive boost during today’s session, as news that Greece may be close to a deal on its debt led to risk taking among traders. Additionally, the IMF proposal to increase its lending capacity helped riskier currencies like the euro throughout the day. That being said, the euro’s gains were not so significant to signal a change in its long term bearish trend. The euro-zone’s problems still far outweigh any positive news, and analysts maintain that a real reversal for the common currency is still nowhere in sight.
Turning to tomorrow, traders will want to pay attention to any announcements out of the euro-zone, especially regarding a deal on Greek debt. Positive news may be able to help the euro extend yesterday’s gains. At the same time, the threat of Greece defaulting on its debt is still a very real possibility. Should such an event take place, the euro will likely tumble as a result. Traders will also want to note the results of a batch of US news scheduled to be released later in the day. Positive figures may lead to more risk taking which could boost the euro.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
