Mike Paterson’s daily Forex brief
As EU finance ministers prepare to meet today there is still doubt as to whether the latest bail-out plans will be given the nod this week.
Despite many officials saying it is likely, there has been a statement released on the Finnish government’s website this morning saying that the bailout will get final approval in the week starting 12th March and “The final approval for activating the EFSF guarantees and completing the PSI operation are conditional on the Troika and the Eurogroup deeming the PSI as successful and Greece to have fulfilled its commitments. This assessment and the final approval for the second Greek package are likely to take place in the week beginning March 12th”.
So the farce/drama continues and the news caused a little knock back in the Euro earlier this morning, but it’s since regained its poise with EURUSD around 1.3215 and EURGBP at 0.8332 ( GBPEUR 1.1997), with sellers reported at the pivot resistance of 0.8360 ( 1.1961).
EURJPY buying as the Yen continues to weaken is still the main trend out there right now and this is adding support to the Euro, for the moment at least.
There’s been little overall change in the Pound but there are sellers of GBPUSD around 1.5900 to cap any sustained rally at the moment.
Little in the way of data today, so it’s all eyes on Brussels from 14:30 GMT.
Yep, I know you’re not really that bothered either. Can someone wake me up though when it’s all over please?
Have a good week.
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