Friday, April 9, 2010
The U.S. Dollar is trading lower overnight against most major currencies except the Japanese Yen as optimism over Greek debt woes triggered renewed interest in higher
yielding assets. The markets are also making adjustments on speculation that China is readying to announce a revaluation of the Yuan.
The June Euro is trading higher in a continuation of the move which began on Thursday following optimistic comments regarding Greece from European Central Bank President
Jean Claude Trichet. The ECB President dismissed speculation that Greece would default on its debt.
The comments from Trichet have been quite supportive for the Euro which is helping to trigger this morning’s bounce. Despite the rally, traders should remain
cautious because the problems which triggered speculation in the first place that Greece would default on its debt still exist. Some short traders are covering their positions on speculation that the
International Monetary Fund will step in at any time to bailout Greece.
Look for a huge short-covering rally if the IMF steps in to provide …
