There was a real sense that the
market was unable to make up its collective mind about whether the news from
the inconclusive Eurogroup meeting in Riga on Friday was worse for the Euro
than the disappointing Durable Goods report from the US on the same day was for the US dollar. That
report capped a series of poor economic results that are calculated to
encourage delay on the part of the Federal Reserve in raising core interest
rates. The last time Durable Goods came in at such a poor level, the Fed
decided to introduce QE3.
So there was a sideways movement of
the EURUSD pair for the morning of the London session.
…until
Greece news comes to the rescue
Then, some little time before the
start of the New York session, a story appeared on the newswires that the Wall
Street Journal was reporting that the Greece negotiating team for the resolution
of the crisis in the Eurozone that the Hellenic Republic has precipitated is being
reconfigured. The suggestion was that the Finance Minister, Yanis Varoufakis,
will take a less prominent role. This will, at least, give some satisfaction to
the other Eurozone Finance Ministers, who are reported to have given Yanis
quite a piece of their minds at Riga. They are reported to, among other things,
have let him know how much they resented his lecturing style when taking to
them.
This news had the effect of giving a
decent lift to the Single Currency. Will it last?
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