Greek Debt Worries Scared Off Forex Traders
Renewed Greek debt worries scared off Forex traders from buying euros at many of the world’s Forex trading markets and sites, such as ForexYard, during Wednesday’s London and New York trading sessions. The euro suffered broadly against the majority of other currencies including the Swiss franc, which hit record highs against its Eurozone counterpart.
It is now looking more and more unlikely that Greece will be able to meet their original debt repayment schedule, with the Greece’s government considering making a request to restructure the repayment agreement. Many market analysts and insiders believe that the shadow of uncertainty hanging over Greece is the main reason for the euro’s recent poor performance. However, it is widely believed that even if the Greece situation worsens it wouldn’t be disastrous for the single European currency.
Towards the end of Wednesday’s New York Forex trading session the euro was continuing to struggle, losing ground across the board. The euro was down to $1.4086 against the US dollar and down to Y115.45 against the Japanese yen at ForexYard, where traders are still willing to open short positions buying euros but appetite for the euro in the long term is virtually non-existent.
So what next for the euro? Well the European Central Bank has been making noises regarding further interest rate increases, possibly as soon as this summer. And as always, an interest rate hike would be likely to boost the struggling euro.
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