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The Euro Rebounds As The Decline Was Seen By Traders As To Quick
The euro rose against the greenback as investors bet the 16-nation currency's recent losses on Greece's budget turmoil were too rapid to sustain. Prime Minister George Papandreou said Greece is ready to undertake the reforms needed to rein in the budget deficit, helping the nation emerge from its fiscal crisis in the 'very near future.' 'Some risk seeking came back today,' said Amelia Bourdeau, a foreign-exchange strategist at UBS AG in Stamford, Connecticut. 'You don't have any negative headlines about Greece and that's pushed the euro higher.' Europe's currency has fallen 0.7 percent against the dollar in February on concern that sovereign debt problems will hamper a recovery in the euro region. The EUR/USD is currently trading at $1.3770 as of 20:28pm, GMT, with a bullish trend.
U.K. inflation accelerated in January as an increase in sales tax pushed the rate high enough to prompt a public letter of explanation from Bank of England Governor Mervyn King. King said last week that the central bank can't control short-term price moves as the pound's weakness, higher commodity costs and the expiry of the sales-tax cut stoke consumer prices. 'If inflation doesn't start to fall back as rapidly as they project - and by the middle of this year we will have an early sense of that - that could be the point where their credibility starts to get tested a bit more,' said Ross Walker, an economist at Royal Bank of Scotland Group Plc in London. The GBP/USD is currently trading at $15790 as of 21:12pm, GMT, with a bullish trend.
The Canadian currency appreciated as much as 0.8 percent to C$1.0410 per U.S dollar, the strongest since Jan. 20. Commodities account for at least half of Canada's sales abroad. 'We're seeing a rise in commodity prices,' said C.J. Gavsie, managing director for foreign-exchange trading in Toronto at Bank of Montreal, Canada's fourth-largest lender. 'Some of the pressures that have been leaning on the market are subsiding. That's prompting some Canadian dollar buying.' The USD/CAD is currently trading at 1.0433 as of 20:50pm, GMT, with a bullish trend.
Finotec Group Inc.
http://www.finotec.com/
Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.
