As investors cautiously await any news regarding a Greek debt swap deal, the EUR/USD has slipped following last night’s bullish run. That being said, the pair has managed to stay above the 1.2900 level, well above the 17-month low hit last week. The EUR/USD saw significant upward momentum yesterday following successful debt auctions from both Spain and France. While the pair was not able to break the psychologically significant 1.3000 level, the positive news boosted investor hopes that the euro-zone may be slowly heading toward some kind of recovery.
As we close out the week, traders will want to pay attention to any developments regarding Greece’s efforts to avoid defaulting on its debt. While positive news is likely to boost the common currency, it should be noted that the euro-zone is still in an extremely fragile place, and that full recovery is still no where in sight. Additionally, traders may want to note the result of the US Existing Home Sales figure, set to be released at 15:00 GMT. A better then expected figure may boost investor risk taking, which could also benefit the euro in evening trading.
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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.
