Good day to you.
The most important events of the past two days:
Greece said that the debt is strongly opposed to rebuilding efforts and this causes damage to the stability of Greece and the European currency. Apparently there are no other solution except to help Greece. It was commented that German plans regarding the previous requirements regarding financial assistance may be dropped and in reaction to this news, the EUR/USD had climbed to 1.4400 level.
Summit of G8 brought about little clues regarding the currency market. Comments were made regarding the need for a strong Euro but not so strong that it affects the region's exports.
Inflation eased to an annual 2.7 percent in May for the 17 countries that use the Euro according to official figures released Tuesday. The drop surprised markets but may not be enough to stop the European Central Bank from using its next meeting to signal a coming interest rate hike.
Technical point of view:
The EUR/USD is still in an unclear situation and traders are probably awaiting the decisions by the EU/ IMF. There is no clear trend but in general as in the above picture you can see, when the currency pair is above the 1.4340 level, it is probably in an ascending trend. If this level is broken, it probably will come down to 1.42.
Have a nice time.
Masoud.
Masoud is a businessman and a Senior Forex Koala. Connect with him at our page on Facebook.
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