Euro Declines Against Dollar - Forex Market Update, 26th June 2011

View PDF | Print View
by: fxsolutions
Total views: 44
Word Count: 318
Date: Fri, 8 Jul 2011 Time: 10:35 AM
0 comments

Chris Advincula, Chief Market Analyst at FX Solutions (http://www.fxsolutions.com/), provides Forex traders with an overview of currency market activity and news on 26th June 2011, including news of the Euro's decline against the dollar.

"The Euro declined against the dollar in the Asian session today, from 1.4200 to 1.4101 (down 99 pips or -0.7%) on the continued concerns for the outcome of Greece's debate in the parliament to vote on the unpopular five-year austerity plan that has been mandated by the Euro and IMF finance ministers. The rates made a 20 percent rebound in the morning session of Tokyo to 1.4138.

"The austerity plan calls for a 78 billion euro package for tax increases, asset sales and spending cuts that Prime Minister George Papandreou had proposed which was originally rejected by Greece's conservative opposition party. Papandreou holds 155 votes only in the 300-seat parliament. He still needs to secure the second approval from his parliament this week, otherwise the European Union and the International Monetary Fund will not disburse the fifth payment of 12 billion euros from the agreement last year of the 110 billion euro bailout program.

"Greece faces the threat of defaulting on their maturing bills and bonds that are due this August. They need about 6.6 billion euros to fill their shortfall for the obligations to repay the bonds. Greek officials also said that they may not have money past mid-July to pay wages and pensions.

"There is no significant economic data in Europe. The dollar continues gaining ground over the euro.
The 30-day Exponential moving average met resistance at 1.4200and is now at 1.4130."

For free daily video market commentary from FX Solutions, visit:
http://www.fxsolutions.com/learning-tools/education-center.asp

Forex trading involves substantial risk of loss and is not suitable for all investors.

About the Author

About FX Solutions

FX Solutions is a leading foreign exchange broker with a focus on advanced FX trading technologies, transparency of transaction and unparalleled customer service. FX Solutions serves retail clients, white label partners, institutional trading partners and introducing brokers in over 140 countries.

FX Solutions' products are regulated in the United States, United Kingdom and Australia. FX Solutions in the United States is regulated as a member of National Futures Association, and registered with the Commodity Futures Trading Commission as a Futures Commission Merchant. In the United Kingdom, FX Solutions is a registered trading name of City Index Limited which is authorized and regulated by the Financial Services Authority. FX Solutions in Australia is a registered trading name of City Index Australia Pty Ltd. which is authorized and regulated by the Australian Securities and Investments Commission.

For more information, please visit www.fxsolutions.com www.fxsol.co.uk and www.fxsolutions.com.au