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FX Solutions |
Fundamental Analysis | Mar 23, 2010 12:00AM GMT |
Despite the sour news on Greek debt and the inability of the EMU to come to an agreement among it members about how, or even if, to assist Greece , the euro found strong support ahead of the 1.3450 technical level. The 60 point bounce to 1.3525 does not remove the downside risk to the euro and the risk averse crosses. If the Europeans do not arrange some type of assistance to calm market doubts on Greek debt renewals due in the next two months the potential for further euro losses is high.The 1.3450 support has not been crossed since last May when the currency was moving higher in the unwinding of the dollar flight positions caused by the financial crisis. The German-Greek ten year spread increased for the third day widening by 13 basis points to 337, or a 3.37% premium for Greek debt.
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