Tuesday, April 6, 2010
The Dollar Index is trading sharply higher as the Dollar is gaining against the European currencies following reports of problems with the Greek bailout package. Both the
June Euro and June British Pound are trading sharply lower as Greece tries to amend the proposal to receive aid from the International Monetary Fund and to negotiate better interest rates on loans
from other European Union members.
Traders have been nervous since last week when Greek bonds began selling off and the cost to service its debt surged. Although the first bond issue was well received, it
now appears that this may have been a token gesture by Euro Zone members. Since this initial offering, interest rates have slowing risen, making it very expensive to Greece to continue to
function.
U.S. stock indices are trading lower because of risk aversion. For several days, stock indices have been buoyed by good economic news, but the rallies have appeared to be
labored at times. Traders looked a little tentative at times seemingly expecting a correction …
