IMF waiting on Europe

Currencies Direct February 27th 2012 - < 1 minute read

This week is likely to be a much calmer and quieter affair in comparison to last week which brought the ongoing Greek debt crisis to a close for the short term. Whether this will last remains to be seen as the struggling nation will have to renew future debt deadlines in addition to steering through an election in April. Expect the Euro to trade in limbo as traders decide on their view over how successful this latest deal will be. Comments have been coming thick and fast from finance minsters around the world with statements ranging from ultra positive to cautious.

The G20 met in Mexico over the weekend with the topic of Euro contagion at the top of the agenda. The Eurozone countries pledged to reassess the strength of their bailout fund in March, which would clear the way for other G20 countries to contribute via the International Monetary Fund. The G20 said “This will provide an essential input in our ongoing consideration to mobilise resources to the IMF”.

Data this week comes mainly from the States with US durable goods orders on Tuesday, GDP on Wednesday and jobless claims on Thursday. The US government will be expecting positive figures across the board as they continue to spend their way out of recession to attract growth.

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