Greek rescue package boosts Euro

The Euro managed to rally overnight after hitting lows of 1.3912 yesterday. This development was caused by the breaking news of a Greek rescue package as well as profit-taking resulting from concerns about today’s US GDP data release. The EURUSD presently sits at 1.3960 (see hourly chart).

Markets calmed after Euro-zone officials announced that Greece would receive emergency support from both the European Commission and other member countries. In the next few months, besieged Greece looks now set to benefit from financial assistance to be provided by the European authorities.

There is substantial uncertainty about the pending release of the USD GDP data figures due out soon which has caused the markets to stabilize. These figures will almost certainly drive the next stage of price action.

Ben Bernanke finally received a second nomination as chairman for the Federal Reserve. In doing so, he had to face the largest opposition experienced by any nominee in almost 32 years. Many concerns were voiced such as his total inability to detect and warn about the present global fiscal crisis.