Investor concerns over the Euro and the growing political debate in much maligned Greece were put to one side s investors took a break from the euro sell off of the last few days. Even though troubles appear to be mounting in Greece as 1 billion euros of bail out money is being held back by the eurozones rescue fund, investors halted the slide of the Euro in Asian trading. The 1 billion euros will be given to Greece later “depending on the financing needs of Greece”, the board of the European Financial Stability Facility (EFSF) announced yesterday with Eurozone finance ministers meeting on Monday to consider whether or not to disburse the remaining 1 billion euros from a 4.2 billion rescue package.
Investor fears that the leftist Syriza party, which is attempting to piece together a government, will continue calling for the rejection of austerity measures s part of the terms and conditions of the bailout money and ultimately take the country towards a default and out of the Eurozone altogether. The EUR/USD was up 0.20%, still trading below the 1.300 barrier at 1.2953 whilst the EUR/JPY reached 103.28, increasing 0.31%, up from a low of 102.91 and from a high of 103.29.
Meanwhile, this morning in asian trading, it was announced by the worlds 2nd largest economy, China, that its export and import growth slowed down for the month of April, increasing fears of a sharp slowdown in its economy and sparking calls for easing of the monetary policy. Exports increased by 4.9% in April year on year, falling from the 8.9% annual growth witnessed in March, indicating that global demand may be slowing. At the same time, imports increased by just 0.3% year on year, falling sharply from the 5.3% in March, a sign of the fall in domestic demand.
Today is going to be a busy and volatile day when European markets open. Lots of mixed and important data released throughout the day so make sure you stick glued to the news and the charts.
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