Euro Tumbles amid Greece Concerns, U.K. Mortgage Approvals Disappoint
• Greece Requests EU Support Package – Wall Street Journal
• Concerns Over Greece Slam Euro – Wall Street Journal
• Germany backs IMF – Bail Out for Greece - Financial Times
• Euro Weakens on Concern Greek Aid Plan Unraveling; Oil Falls as Yen Rises- Bloomberg
• Papandreou Urges EU Emergency Plan After German Officials Suggest IMF Aid - Bloomberg
GBP/USD– The number of loans granted to buy homes in the U.K. weakened in February, with the reading diving to a nine-month low. The sharp fall led mortgage approvals to slip to 48K from 49K in January, with economists forecasting a rise of 54K, the seasonally adjusted sample from the Bank of England’s lending panel showed. Meanwhile, Britain’s public sector net borrowing rose less than expected in February as tax income advanced at the fastest pace in almost two years, with the reading posting a 12.4 billion-pound short fall following the revised reading remaining unchanged the month prior. Indeed, policy makers paused their 200 billion pound bond plan in March for a second straight month, and the MPC is likely to hold a neutral policy stance throughout the first-half of the year as policy makers aim to balance the risks for the economy. To discuss this and other topics, please visit the GBP/USD forum.
EUR/USD– European trade balance in January narrowed to -8.9B from a downward revision of 4.1B the previous month, while economists were expecting a trade deficit of 4.0B. The reading is largely attributed to a strengthening global economy as exports advanced 5% from January 2009, while annualized imports pushed 1% higher. Indeed, the global economy has been fueled by governments spending trillions of dollars in order to encourage a sustainable recovery from the worst recession since World War II. Meanwhile, overnight, Greece’s Prime Minster George Papandreou told a European Parliament committee that Greece is taking measures in order to put their economy back in order, and went onto add that Greek measures would be enough for IMF aid as Papandreou publicized that it may need to seek help from the international lender as a last resort if a European solution is not generated. As a result, the euro weakened against the Greenback amid concern that Greece will fail to secure financial assistance from the EU. To discuss this and other topics, please visit the EUR/USD forum.
Written by Michael Wright, Daily FX Research
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