The Never Ending GREEK SAGA
Last week we thought US election would be the biggest activity to watch the future of USD and other currencies but it turned out to be European countries are the biggest players. Obama is re-elected again so why USD gained so much of momentum despite being the same policies and measures.
Yesterday, the currencies and metals made big drops and pick-ups all day. There was no real direction, up or down, although you could tell that most of the traders are going for the safe haven currencies. Gold & Silver were the gainer for the week.
Euro is not just allowing any currency to pick up the momentum despite being getting good economical news AUDUSD still lost ground because of Euro worries. Euro has been dragged down because of never ending Greece worries and it has also dragged most of the other currencies down with it. Traders are only buying safe haven because of uncertainty and worry in the market.
Although coalition government was able to win a 153-128 victory for the new round of austerity, there is still the battle for the country’s budget. The next bailout payment for Greece won’t be approved at the Monday Eurogroup meeting. Greece must be planning to refinance 5 billion euros worth of treasury bills.
Even though there will be uncertainty in the market next week but Obama speech, Chinese trade balance and Euro group meeting will be in the limelight. If any of these big events show a sign of improvement in Eurozone then we might see a more stable market next week. However there will be few big economical news to watch for any currency pair.
Chinese trade balance, which is due to come on Sunday, might calm the market down a little as it has done in the past. Positive figures from china might see AUDUSD picking up some momentum, which can take most of the other currencies up against USD.
Euro group meeting & German economical statement, which is due by Tuesday, might make a big make or break for the Euro. Any positive news from these two events might take Euro up which will take the other currencies as well.
CPI and Inflation letter are biggest news for GBP, which will decide the trend for GBP next week. It might recover some ground, which has been lost on Friday because of uncertainty factor in the market.
Whenever Euro goes down against USD it takes most of the other currencies down with it as I have seen in the past 4 years of my trading history. Any good economical news will calm the market down in short term however Greece Bailout can only decide Euro & other currencies future.
My advice to the new or inexperienced traders would be to trade safe and follow their GURU. Please feel free to ask me any questions. I make predictions and suggestions regarding most of the currency pairs every day on my wall. Follow or copy me to get the latest news and trading tips. I believe in making profit without any losses and do deep analysis.
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