By Forex Signs, Inc.
The euro was influenced to drive along the bullish trend channel against the yen and dollar, after the European Union and International Monetary Fund officials travel to Dublin to discuss the possible aid package for the nation’s troubled banking sector.
The shared currency had also seen to advanced against 13 of its 16 major counterparts on optimism that this bailout for Ireland will prevent contagion in the region’s larger debt markets.
This said potential bailout of Ireland is temporarily good news for risk sentiment, by which may lead to buying of the euro and selling of the yen and the dollar.
So far, optimistic viewpoint of the investors within the market had been reinforcing the risk appetite. Momentarily, with this ongoing positive outlook in response to the bailout issue, traders could assume that in the following trading events, the euro could still be set on a consolidating position.
European Session Outlook The Euro Rose against the Yen and US Dollar, as European Union and International Monetary Fund officials make their way to Dublin to discuss the EU’s possible bailout for Ireland’s troubled banking system. The Euro went up to 113.21 against the Yen from a low of 112.34. The Euro closed at 1.3535 against the US dollar from a low of 1.3466 and going a high of 1.3570.
For the coming European session, analysts believe the Euro will continue to maintain its bullish momentum as the ECB is set to announce their Current Account figure as it expected to squeeze down to 2.2B from 7.5B recorded last time. Another market mover is the ECB President Jean-Claude Trichet’s speech regarding sovereign debt crises, monetary policies, and his opinions in giving Ireland a bailout plan.
If the Current account has a better than expected number from its previous release and if ECB President Trichet’s speech gives out a positive response from economists and European leaders, we can see a progressive Euro heading to next week’s trading.
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