Currency markets started this week’s trading in muted fashion, with a lack of fresh bad news from Greece helping to boost risk appetite in the European session, which gave a small rally to the Euro. The price of Greece’s credit default swaps fell in price. However, the debt problems in Greece, and now of Spain and Portugal as well, will remain to be a dominant factor in currency markets. There are no plans by the Euro-zone to bail out these member states. On Friday, Portugal voted to extend spending powers of its regional councils which will make it harder for Lisbon to contain the country’s budget deficit. Still, a slightly better mood amongst investors in European trading helped the Euro to stage a small rally. European equitiy indexes were up over 1% at teh start of the NY session.
Market Update: Lack of News on Greece Helps Euro to Stage Small Rally
Nick Nasad \ 9:01 AM EST \ February 8th, 2010Currency markets started this week’s trading in muted fashion, with a lack of fresh bad news from Greece helping to boost risk appetite in the European session, which gave a small rally to the Euro. The price of Greece’s credit default swaps fell in price. However, the debt problems in Greece, and now of Spain and Portugal as well, will remain to be a dominant factor in currency markets. There are no plans by the Euro-zone to bail out these member states. On Friday, Portugal voted to extend spending powers of its regional councils which will make it harder for Lisbon to contain the country’s budget deficit. Still, a slightly better mood amongst investors in European trading helped the Euro to stage a small rally. European equitiy indexes were up over 1% at teh start of the NY session.