Forex: EUR/USD More Concerned With Fed, Greece than Italy Election
There were a few fundamental shocks for the Euro to absorb over the weekend, and yet EURUSD closed Monday out little changed. Headlines that Greece's bond buyback effort had to be extended to win full participation is a minor hiccup, but news that Italian Prime Minister would step down after the passage of the 2013 budget brings the risk of a new leader that is more lenient on debt reduction. As serious as these concerns are for the medium-term, there is an immediate distraction in the short-term: the Fed rate decision on Wednesday and EU vote on the Greek aid distribution on Thursday. With these uncertainties anchoring risk trends, the FX and capital markets will find themselves struggling to win breakouts - much less develop new trends. We discuss these factors and how to trade in the interim in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.