After a two month high, the majors currency pair, EUR/USD fell slightly at the close of the weeks trading. This after a volatile weeks negotiations regarding the Greek debt reform which stole much ofthe weeks headlines. With it’s on off flow of news the week ended with fresh and very real fears that domestic infighting regarding specifically the reforms over pensions would result in the country defaulting on its mounting debt repayments.
The currency pair hit a high of 1.3322 on Friday after Greece appeared to finaly conclude a deal for fresh austerity measures. However, at the last minute and over the weekend these hopes faded away as key EU finance ministers demanded additional cuts prior to approving a fresh bailout package.
This week the market will again be heavily focused on the debt climate in Greece, traders should take extra caution and continue to keep tabs on the bailout package and economic reform that directly affects the EUR trading value. Keeping an eye on Portugal will also be recommended since it’s own fragile economic situation is likely to return to the spotlight after being overshadowed by Greece for so long.
