USD hits records lows as EUR gets Greek deal boost

The USD reached record lows against the EUR as the Greek bailout was finalized and crisis was if not adverted at least postponed. US Housing fell in January, but revisions to previous months’ data was better than originally reported.

fxlabs heatmap

This weekend the G20 meets in Mexico City to discuss the group’s role in a new round of IMF contributions that are very likely to end up being used to contain the Eurozone debt crisis. U.S., Chinese and Japanese official have questioned the role of the IMF and want more assurances that European individual governments and the economic zone as a whole are doing their part to prevent sovereign debt from reaching default status.

The IMF is looking for a 500 billion dollar commitment from the group in order to face the current European crisis. China, Japan and Mexico are willing to help if Europe leadership acts in line with their rhetoric. The U.S. is not seeking to add additional funds until they see “additional steps” are taken to prevent contagion.

ASIA WEEK IN FX

EUROPE WEEK IN FX

WEEK AHEAD

    • G20 Meetings
    • US Pending Home Sales
    • US Durable Goods Orders and CB Consumer Confidence
    • US Preliminary GDP
    • Fed Chairman Ben Bernanke Testifies
    • US Unemployment Claims
    • German Retail Sales

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza