I & G of the PIGS have been Bailout for Now, When will P and S become a Problem - News of a EU/IMF rescue package in overnight trading propelled the Euro to level last seen on November 11 but the shine quickly came off as the market wounders if the contagion has now stopped. The price action is similar to what happened after Greece was bailout. Will this package be enough? - Time will tell, and I'm sure the experts on bubble TV will be able to enlighten us with their opinions, until then let's concentrate on the price action. For more in depth analysis please read my past post on the blog at http://fxdeskcambridge.blogspot.com. Trading this week will be thin with holidays in Japan on Tuesday and the U.S. on Thursday. Adding pressure to the Euro was Moody's announcement that it may lower Ireland’s credit rating by more than it previously anticipated. Trading in USD/JPY continues to be confined in a tight range. In the rest of Asia, the AUD was up due to the improvement in risk appetite after the Ireland deal helped to negate Friday's surprise move by China to raise bank's reserve requirements. But, NZD was down after an S&P downgrade on New Zealand's foreign currency debt due to a widening current account deficit and credit risks in its banking sector. In Canada, the CAD rallied along with the Euro on the Irish news but then fizzled as concerns that the rescue package may not be enough to stop the contagion. The CAD is still stronger on a relative basis against the crosses, which are trades that do not involve the USD.
No comments:
Post a Comment