Easy-Forex.com Puts Comment on Euro-Zone Greece Debate
Easy-Forex.com recently reported on the debt crisis in Greece putting pressure on the Euro. This is back in the spotlight after the S&P downgraded the country three levels to CCC, the world's lowest credit rating. Now EU financial leaders are debating whether to delay the next rescue payment. Bloomberg reported that major banks including BNP Paribas, Societe Generale SA and Credit Agricole SA may have their credit ratings cut by Moody's Investors Services because of their investments in Greece.
Limassol, Cyprus, June 17, 2011 --(PR.com)-- The market consensus is gloomy and we are seeing this reflected in the price of the Euro. EURUSD dropped over 400 points yesterday from the 1.4500 resistance level overnight. And a breakout to the downside of the 1.4100 support this morning places the pair firmly back in to a downtrend until sellers become saturated in the market.
Traders of Euro crosses should keep an eye on the European bond yields. Yields on 10-year Greek bonds reached 17% on Tuesday which is an early sign of investor nervousness in Greece's ability to meet debt obligation and, in turn, a sign that the Euro could weaken, as it has done this week.
The IMF issued Greece a 110 billion Euro bailout 13 months ago which is paid in tranches, provided the country sticks with austerity plans. If one of these tranches is delayed then Greece will face huge difficulties in honouring their financial obligations. A short term solution is for debt holders to rollover their maturity on Greek bonds, however, a more concrete plan is needed to bring confidence back to the market. Major sources have commented that it is not a matter of if but a matter of when Greece will default. If this happens it will have serious implications on the euro-zone.
Zoe Fiddes, UK Manager, Easy-Forex
16 June, 2011
Please note that Forex trading (OTC) involves substantial risk of loss, and may not be suitable for everyone.
www.easy-forex.com/
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Traders of Euro crosses should keep an eye on the European bond yields. Yields on 10-year Greek bonds reached 17% on Tuesday which is an early sign of investor nervousness in Greece's ability to meet debt obligation and, in turn, a sign that the Euro could weaken, as it has done this week.
The IMF issued Greece a 110 billion Euro bailout 13 months ago which is paid in tranches, provided the country sticks with austerity plans. If one of these tranches is delayed then Greece will face huge difficulties in honouring their financial obligations. A short term solution is for debt holders to rollover their maturity on Greek bonds, however, a more concrete plan is needed to bring confidence back to the market. Major sources have commented that it is not a matter of if but a matter of when Greece will default. If this happens it will have serious implications on the euro-zone.
Zoe Fiddes, UK Manager, Easy-Forex
16 June, 2011
Please note that Forex trading (OTC) involves substantial risk of loss, and may not be suitable for everyone.
www.easy-forex.com/
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357 25 828 899
www.easy-forex.com
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Niki Nikolaou
357 25 828 899
www.easy-forex.com
extn 154
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