By Russell Glaser – Markets were quiet this morning during the European session as Ireland is in the midst of talks with the EU and the IMF. This follows yesterday’s gains in the dollar and pullbacks in equities and commodities.
Talks began this morning between Ireland and delegations from the EU and the IMF. The discussions surround a potential bailout for Irish banks that are teetering on the edge of insolvency and could push the Irish government into default. An aid package is expected to be pieced together to prevent a default by the banks or by Ireland. Despite the bailout talks, the EUR has seen little support as the EUR/USD is trading lower at 1.3490.
Yesterday the EUR/USD lost almost 1% and closed at the 1.3505 level for the first time since September. Equities were also down sharply with the Dow Jones Industrial Average losing 1.59%. Spot crude oil plunged 2.6%.
During the upcoming New York trading session traders will be eyeing the Irish bailout talks as well as US economic data set to be released. US Core CPI is due to be released at 13:30 GMT with market expectations set for a rise of barely 0.1%. The weekly crude oil inventory report is also on tap for 15:30 GMT. The government’s report has the ability to support the price of spot crude that is trading lower on the day at $82.10.
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