Mary McCarthy – Forex-FX-4X

Greece Under Pressure To Secure Debt Deal

Discussions involving Greece and private creditors around a potential and much needed debt deal are yet to conclude as another week passes. Time is running out for Greece to obtain the right deal – with bondholders regarding a write down of a minimum of half of their debt in order to obtain the 130 billion Euro support bundle – this would help finance Greece over the coming months.

EURUSD Caught In Range

EURUSD has been in a range-bound consolidation period this week and unable to subsequently continue with the same bullish momentum seen in recent weeks until a conclusion is found regarding the near term debt issues.  There may well be a downside move ahead if the EURUSD bulls can not break the range highs over the coming week. The euro closed on Friday at $1.3149.

Major Event Risk Next Week – ECB

This past week has seen the NFP release and the U.S. unemployment rate witnessed another drop, by 0.2% to 8.3% and  the Labor Department advised companies hired 243,000 employees in January.  Event risk is coming thick and fast next week for the European area as European policy makers have numerous meetings as well as Greece working to agree on the all important debt package with private creditors.These meetings include negotiations among Greece’s global bailout assistants, and also acceptance from EU members regarding monetary warranties to the European Financial Stability Facility (EFSF), which is financed through the euro zone members, to deal with the European sovereign debt crisis.

The  (ECB) European Central Bank get together to determine monetary policy throughout the European single currency area has the majority of financial analysts believing the ECB will hold borrowing levels at 1%.  There is as always potential for major volatility in the currency markets around these kind of events.

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