The decision by Germany’s Constitutional Court to reject lawsuits which challenged the country’s participation in future euro zone bailouts offered limited support to the euro (EUR) in Wednesday’s early trading. Investors are now watching the region closely as the regional interest rate decision by the European Central Bank (ECB) looms large.
The court ruling, while putting some traders at ease about future euro zone stability, was not necessarily considered a positive, but rather the removal of a negative. Concern that the euro zone’s largest economy would opt out of future bailouts made the whole bailout venture look fragile, but taking this fear away does not diminish the real debt problems the region still faces. As an aside, the EUR is also expected to take a hit Thursday as many are forecasting a dovish statement by the ECB regarding interest rates.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
