The EUR rallied hard to open the week following the announced $61 billion financial aid package aimed at relieving Greece debt burden. The EUR opened at 1.3640, nearly 200 pips above Friday’s close. However, as the day wore on the EUR was unable to sustain its opening rally. The GBP also opened higher but was also unable to hold on to most of its gains.
Although equity markets were up globally the reaction to the Greece bailout was somewhat subdued. The ESTX 50 gained just enough to close above 3,000 yesterday after picking up 8.69 points. The FTSE 100 added 6.67 points while the DAX added less than 1 point. The Nikkei 225 continued it lively pace, advancing 47.56, but still a shade off its high for the year. On Wall Street, the DJIA managed to pick up 19.05 which was just enough to end the session above 11,000.
Oil continues its moderate sell off closing lower for the 4th successive session, to just below 84.50. Metals were down as well as Copper dropped $3.35 and Gold fell for the first time in three session to close at major Resistance of 1,156.50, losing over $4 an ounce.
Europe’s $61 billion pledge to bail out Greece from under its financial burden of debt helped lift market sentiment today. Canadian Housing Starts came in just below expectation at 197.3. versus 205k. Today, GBP Trade Balance figures will print. In the U.S, February Trade Balance figures will be released. They were a major surprise last month and analysts expect that there will be revisions to last month’s figures, however expectations are still calling for trade balance numbers to have drop off even further.
- Alex Perlmuter
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