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Euro Trading Off Lows on the Following:

  • Sarkozy says Euro accord wont include all 27 EU nations.
  • Draghi says ‘very good outcome’ for Euro area at Summit talks, more work needed.
  • Merkel says tighter budget controls agreed among Euro 17.

Spain’s People’s Party Defeats Socialists

The People’s Party in Spain defeated the Socialist party winning 182 seats to the Socialists’ 111. Rajoy of the People’s Party had the following comments that resulted in a muted reaction from the Euro as it trades above the 1.35 handle.

  • Only enemies are deficit, unemployment, excess debt.
  • Spain in most ‘delicate’ situation in 30 years.
  • Calls for unity in ‘common effort.’
  • Say’s Spain’s voice must be respected again in Brussels.
  • Will return Spain to the ‘top of Europe.’
  • There are ‘difficult times ahead.’
  • Work starts tomorrow; task ahead is not easy.

Papandreou to Step Aside as Prime Minister

News ahead of the open that Greek Prime Minister Papandreou will step aside and a new Premier will take office on Monday has moved the EUR/USD pair higher through the 1.38 handle. Perhaps more importantly the Greek parties have agreed to form a unity government.

Euro Gains Light Bid on Greek Update

The EURUSD pair moved above the 1.37 handle to a high 1.3720 on a report from a Greek government official stating that the cabinet decided to give Prime Minister Papandreou unanimous backing for his plans to hold a referendum.

Sarkozy Estimates EFSF Bailout Fund Worth $1.4Trillion

The EUR/USD has continues higher pushing the 1.40 handle

Euro Leaders Agree to 50% Greek Writedown

Euro leaders agree to 50% write-down for Greek debt. The Euro immediately popped toward recent highs in the middle of the 1.39 handle before trading back off. This is no surprise to the market and its going to take a lot more of a comprehensive plan to put investors minds at ease.

Forex Market Outlook 10/25/11

By Mike Conlon, on Oct 25, 2011

Well it looks like the market is unaware that there is major risk potential in the marketplace as stocks and commodities took off yesterday and it was “game on” for risk appetite. As a result, the Euro as well as the commodity bloc currencies moved higher despite the Euro debt decision due out tomorrow.

Does the market know something that we don’t? As often is the case, the answer is simply “no”. What the market does know is that it wants to take on risk and wants to buy stocks (especially large fund managers who have posted less than stellar returns) as corporate earnings have been largely better than expected. Throw in higher Chinese PMI data that showed that they aren’t slowing entirely and you have a recipe for gains.

Forex Market Outlook 10/21/11

By Mike Conlon, on Oct 21, 2011

The market has been range-bound headed into the weekend, but man, those ranges are pretty big! I was surprised as I thought we’d see the ranges tighten up but that hasn’t been the case. Yesterday, the markets made huge moves as various news trickled out regarding the Euro debt crisis.

It is times like these when I tend to be more cautious, as it is difficult to know when news may hit or what its impact may be. Yesterday, the markets were selling off as risk aversion picked up throughout the early US session, only to completely reverse after “news” came out that the size of the rescue plan is going to be in the magnitude of $1.3 Trillion, with a “T”. That is encouraging news for the market, as in this case more is better.

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