EUR/USD Weakens on Greece Yet Again; Other Currencies Mixed
April 07, 2010 2:33 PM
The EUR/USD weakened on renewed concerns that Greece will default on its debt. Investors feel that Greece may not be able to finance its debt burden. Conditions are expected to worsen as financial measures imposed by Greece to shore up its economy begin to take hold. Losses have been limited by rumors of central bank buying.
The GBP/USD has recovered from earlier selling pressure, triggered by a weaker than expected U.K. services industry reports. Market participants are looking for more downward pressure. The USD/CHF is trading higher because of the weaker euro. Traders expect more intervention by the Swiss National Bank.
Market participants say talk of a large U.S. investment bank buy is helping to boost the USD/CAD which dipped below parity earlier in the session. Analysts say oversold conditions and a possible closing price reversal bottom may encourage short-covering over the near-term.
