Week Ends with Forex Traders Still Concerned about Greece Debt Situation

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Today’s sample of Forex ####ysis from ForexHound.com

The trading week ended with traders still fearing a widening and deepening debt situation in the Euro Region. Optimistic traders are looking for some solution to be reached by either a “pseudo-bailout” by the European Central Bank or European Union. Legally, the ECB or EU cannot offer an outright bailout package so they may have to figure out a way to get around this restriction.

The International Monetary Fund was mentioned as a suitor but it was awfully quiet this week. Pessimistic traders are looking for the situation to escalate to Portugal and Spain, putting additional pressure on the Euro in the short-run. If a solution is reached over the week-end, then the Euro is likely to open sharply higher as shorts will pay anything to cover positions.

The Dollar had a volatile day before settling sharply higher for the week. Early in the session, the U.S government reported that another 20,000 jobs were lost last month. Expectations were for a 25,000 to 40,000 increase. A surprise drop in the unemployment rate from 10.0% o 9.7% shocked the market, triggering a wild intraday move.

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