Forex trading

The currency pair EUR / USD remains in the forex market around the 1.3500 mark, while the pressure increases on the Greek government to close a deal with Germany(mainly) to receive loan guarantees without the country going into chaos. This Friday there is a meeting between Chancellor Merkel and Prime Minister Papandreou, and the Greeks are really going to have to get something finalized.

Investor and currency trader George Soros recently said on CNN that the Euro might not survive if the problems in Greece are not resolved. There is also a rumor that Soros and a large number of Hedge fund CEO’s are still trying to shorten the EUR/USD by a rate of 1,0000 (i.e. 3500 pips lower than the current rate), but this has not been confirmed. (Soros is known to the public as “the man who broke the bank of England” when he earned $1 million by shorting the pound in the early 1990’s).

The fact is that the pressure this week in Greece is present because Merkel and other EU leaders have said that the current measures that the Greek government is willing to take are not enough. "It is Greece's job to do what it has announced, which is to implement the deficit reduction goal" Merkel said yesterday. In other words, if the current measures are not sufficient, further action will be taken.

The abolition of the 14th month is one of the possible measures, but a Greek union leader responded to this potential proposal by saying that it will be a "cause for war". Incidentally, it was not clear whether he meant war with the Germans for any refusal of a loan for their debt-ridden country, or war with the Greek government.

The expectation is that developments for a possible Greek bailout online currency trading will continue to dominate as far as the currency pair Euro / dollar are concerned. There is a high downside risk for the EUR / USD, when it becomes clear that Germany does not want to provide a loan to Greece. In that case, there are no direct support levels to prevent the fall of the EUR / USD.


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