USD tumbles after greek debt deal reached
- Last Updated on 21 February 2012
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The US dollar started the week off on a bearish note, as investor risk appetite went up amid hopes of that Greece would receive its much needed bailout package. That trend continued throughout the day and into overnight trading, after the Greek bailout deal was approved. The EUR/USD rose to just below the 1.3300 level before staging a slight downward correction. The AUD/USD shot up to the 1.0815 level before correcting itself during overnight trading. The pair is currently trading around 1.0735.
Turning to today, traders will want to continue monitoring euro-zone news for any announcements regarding Greece and its ongoing debt issues. Despite the bailout package, it is still unclear whether Greece will be able to avoid defaulting on its debt next month. Additional euro-zone countries, such as Portugal, also have significant financial issues that could limit euro gains in the long term. The US on the other hand, has seen a number of signs recently that show that it is on the path to economic recovery. Analysts are warning that the euro's recent gains could be capped off should euro-zone economies falter while the US continues to grow.