EUR/USD Looking for Support, Traders Say 'No Thanks'
Tweet
Share
E-mail
The spot price of the EUR/USD breached support levels at around 1.300 last week and is looking to find support Monday, but traders aren’t eager to catch this knife.
The fall is taking place as drama in Greece and throughout Europe is seemingly beginning its climax, and it is becoming more and more obvious how the story is likely to end -- badly.
Carlo Mareels, senior banking analyst at RBC Capital Markets recently said, “If we see Greece pull out of the euro, it is unlikely to be an orderly exit. You can’t plan for it. There is always likely to be an unpredictable collateral issue.”
While Mareels isn’t predicting Europe will shatter, a few analysts are. It would start with a run on the banks in Greece that could -- in a worse case scenario -- spill over into Spain and Italy.
FXE is an ETF that tracks the exchange spot rate of the euro and the U.S. dollar is down 8.5 percent in the past 12 months, with 1.25 percent coming in the last five days. Other major currencies and crosses are also gaining verses the Euro, including the EUR/JPY, which is at lows not seen since February.
The fall is taking place as drama in Greece and throughout Europe is seemingly beginning its climax, and it is becoming more and more obvious how the story is likely to end -- badly.
Carlo Mareels, senior banking analyst at RBC Capital Markets recently said, “If we see Greece pull out of the euro, it is unlikely to be an orderly exit. You can’t plan for it. There is always likely to be an unpredictable collateral issue.”
While Mareels isn’t predicting Europe will shatter, a few analysts are. It would start with a run on the banks in Greece that could -- in a worse case scenario -- spill over into Spain and Italy.
FXE is an ETF that tracks the exchange spot rate of the euro and the U.S. dollar is down 8.5 percent in the past 12 months, with 1.25 percent coming in the last five days. Other major currencies and crosses are also gaining verses the Euro, including the EUR/JPY, which is at lows not seen since February.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- China's DeepSeek developing its own AI chip - Reuters
- RBC Capital Downgrades PolyPeptide Group AG (PPGN:SW) to Sector Perform
- Csquare targets up to $1.35 billion in US initial offering
Create E-mail Alert Related Categories
ETFs, Insiders' Blog, Trader TalkRelated Entities
RBC CapitalSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
