Euro-Zone Bank Stress Tests Fail To Support the Euro

By Yan Petters – Last week’s trading session ended with the publications of the Euro-Zone Bank Stress Tests results. The results were considered to be positive as they showed that most of the major banks within the Euro-Zone are able to sustain another economic turmoil.

The expected to reaction to this publication should have been a stronger Euro; however the Euro wasn’t supported as a result. The main reason that the Euro wasn’t boosted is the questionable methodology of the tests. Many analysts claim that the tests weren’t strict enough, and that they fail to represent the real situation of the major banks. The main question regarding the results is how it can be that banks from Greece and Portugal, who are known to have unusual difficulties, managed to pass the tests?

The discussion regarding the results of the stress tests results are likely to proceed during the next few days, and will probably have a large affect on the market. Traders are advised to remain updated on this issue.

Today’s leading publication will be the U.S. New Home Sales which is expected at 14:00 GMT. This report measured the number of new single-family homes that were sold during June. If the end result will beat expectations for 317,000 new homes, the Dollar is likely to be supported.

Forex Market Analysis provided by Forex Yard.

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