Friday, October 19, 2012

Forex Daily Review: PLdot may Affirm the Downtrend in Euro-dollar

19 Oct 2012• Matti Williamson, FX and commodities analyst      EU Summit, Day II

Traders that hoped for a deeper solution for Greece may have to wait until 28 October summit that is viewed as the most important meeting this month. Yesterday's EU summit concluded a supervisor for Euro-zone banks is required and should be implemented in the upcoming year (2013). The discussions are expected to continue into today's session but no major headlines are expected.

EUR/USD Analysis

In my opinion we are likely to hear more euro-negative comments in today's meeting in regards to Spain and Greece, which may weigh on EUR/USD. Google earnings and Greek Prime Minister request to release the full tranche (EUR 31.5 billion) as soon as possible weighed on Euro-dollar through the Asian session but the pair managed to cling on to its tight range.



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