Foxy Forex European Market Report
Posted in Market View
- Markets opened stronger with investors still cautious from growing concern about uncertainty in Italy which pushed the country’s borrowing costs to all-time highs of 7%
- Eurostoxx 50 up 0.7% the DAX up 0.9% the CAC up 0.8% the FTSE up 0.7% in the first two hours of trading
- Investor’s focus on Italy as parliament is going to vote on the public budget which could trigger a confidence vote of prime minister Silvio Berlusconi whose support weakened considerably within the government coalition the EU and IMF pushing for implementation of controversial austerity measures
- Tensions in Greece are easing after Papandreu’s resignation forming a unity government ECB vice president Lucas Papademos is leading the polls to be Prime minister although IMF director Panagiotis Roumeliotis is also an important candidate
- The Euro and Pound have rallied from positive equity markets EUR/USD sell off from 1.3780 was contained at 1.3725 the pair rallied to session highs of 1.3790 GBP/USD rallied from 1.6035 hitting highs of 1.6090 USD/CHF rally from 0.8760 low last week is been capped at 0.9065 the pair sold off of session highs moving right below 0.9000 USD/JPY quietly trading 78.05 to 77.97
