EUR starts week off bullish
- Last Updated on 21 February 2012
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The euro extended last Friday's bullish momentum throughout the day yesterday, as investors reverted to riskier assets ahead of the approval of the Greek bailout package. Following its approval, the euro continued advancing against safe-haven currencies like the US dollar and Japanese yen. While the EUR/USD capped its gains just below the 1.3300 level, the EUR/JPY continued to move throughout the night. The pair is currently trading just below 106.00, up over 100 pips since the Greek deal was announced.
Today, traders will want to note that any pessimistic euro-zone news has the potential to negatively impact the EUR. Greece is in a very fragile position, and is still in liable to default on its debt. Additionally, there are fears that the austerity measures Greece has promised to undertake in exchange for the bailout may cause the country to slip into recession. It is clear that the euro-zone still has a long way to go before recovering financially. This means that any gains the euro made last night could be short lived.