Despite greek bailout, EUR resumes bearishness
- Last Updated on 22 February 2012
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The euro staged a downward reversal during yesterday's trading session, despite the approval of a Greek bailout package that many hoped would boost riskier currencies. The EUR/USD once again fell below the 1.3200 level during European trading before staging a slight correction and stabilizing around the 1.3230 level. Against the Japanese yen, the common currency fell some 80 pips before bouncing back to the 105.40 level.
Turning to today, euro-zone news is likely to remain the driving force behind market movements. Ongoing fears regarding Greek debt continue to cause investors to abandon riskier currencies like the euro. The common currency may continue to fall unless signs that the euro-zone is recovering economically are released. Manufacturing and Service PMI's out of both France and Germany may help the euro recoup some of its recent losses when they are released today.