Thursday, May 10, 2012
In today's V.I.P. webinar, we briefly discuss the current price behavior in the EUR/USD pair and the fundamental news pushing market prices. We also place a few live trades using the Slumdog Forex trading system.
Tuesday, May 8, 2012
The EUR/USD has been under heavy pressure as political turmoil breaks out all over the Eurozone. The elections over the weekend, in both Greece & France, have stoked fears about the Eurozone's ability to solve its sovereign debt problems. Socialist Party Leader Francis Hollande won the French presidential election and the major theme of his campaign was to take away cuts in spending, minimize austerity, and renegotiate the terms of the fiscal compact agreement. After his May 15th swearing into office, President-Elect Hollande will have to spell out more clearly how he plans to cut the deficit and stimulate growth without austerity. German Chancellor Merkel said the Euro Fiscal Compact is not negotiable and she gave this stark warning to France despite her constant insistence that she plans to work well with the newly elected president.
Greece, on the other hand, is experiencing political gridlock as no party wins an outright election majority and there are fears over whether they will be able to form a coalition government by the May 17th deadline. The Greek Leftist Leader Tsipras stated that the Greek bailout pledges are now "null & void". He wants an immediate renegotiation of the bailout package and he refuses to work with the 2 pro-bailout parites Pasok & New Democracy Parties, unless they also reject the terms of the Greek reform for bailout. If Greece does not go along with the recommended austerity measures provided by the Troika, then this may signal an eventual departure of Greece from the Eurozone. This threat of a disorderly Greek exit has caused many investors to fear the possibility of Euro-wide contagion, which will shift market sentiment towards the safe haven play. Today, the EUR/USD pair broke below the 1.3000 psychological handle.