Euro Suffered As The Greece Debt Crisis Continued
Once again, the euro suffered as the Greece debt crisis continued to top the headlines of most financial news pages. The euro lost more than 1.5 per cent against the US dollar during Friday’s Forex trading sessions at eToro and at other Forex markets, and today, to make matters worse, the Greek Prime Minister has said that Greece cannot meet the agreed repayment plan required to secure the IMF bailout funds on offer.
In a cabinet meeting today, the Greek Government proposed a move that would see civil servants who are approaching retirement age being put in ‘reserve’ or being suspending at reduced rate of pay. However, this, and the many other austerity measures proposed, still won’t be enough to meet the repayment quota that’s a condition of the next £1.6 billion instalment of the total £94 billion rescue plan.
So what does this mean for Greece, the European Union and, most importantly for Forex traders, what will happen to the euro? Time and again over the last few months a fix for the European debt crises has been proposed, the euro strengthens, doubts creep in regarding the effectiveness of the fix and the euro slides again. This has happened once again as the euro rallied during the week following Germany’s decision to back the fix, then slumped again as faults were found in the solution and confidence was lost.
So how can you profit from these swings? Well, as short investment opportunists, the EUR/USD offers great opportunities, particularly ahead of breaking news from Europe. However, the European debt crisis has made this currency pair a ‘no go’ area for long-term investors, who are instead buying gold, as a rule.
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