The investors await the Greek voting

Voting in GreeceIn the latest round of forex trading news, the Euro has remained in its decidedly weak position in relation to the dollar as investors await the outcome regarding Greece’s parliamentary vote on the endorsement of yet another round of austerity measures.

These measures must be approved should the financially stricken country wish to receive the latest bailout package. This sentiment is further entrenched amongst the more bearish investors who feel that even should this package be approved, it is only a matter of time before Greece exits the Euro.

While many binary forex traders have taken a watch-and-wait stance for any eventuality with Greece, their attention is also beginning to refocus on Spain. Much of the pressure of an imminent bailout seemed to be alleviated after investor confidence caused bond yields to lessen well below the seven percent threshold, yet still anxiety remains.

This is mainly due to certain autonomous regions such as Catalonia threatening to leave the nation. Should this happen there is a fear that other provinces may follow suit and such volatility would have dire economic consequences on Spain and an already fragile Euro.

A third factor which has kept the Euro and the dollar trading within tight ranges is the anticipated outcome of the elections currently underway in the United States. For binary forex trading in the western hemisphere, a return to positive sentiment may yield short term bullish results on the dollar. For this reason trading has been relatively light and with tight margins until the outcome is clear.

Many believe that the election of either candidate may trigger such an upswing in the dollar. In theory this may represent a situation where the binary trader can take a short term profit on the dollar’s rise. Still, should confidence return to the Euro after the Greek parliamentary vote, a reversal may occur and the Euro break out of its eight week doldrums.

Monday, November 5th, 2012 europe

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