{"id":15413,"date":"2010-11-15T10:09:33","date_gmt":"2010-11-15T15:09:33","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=15413"},"modified":"2010-11-15T10:09:33","modified_gmt":"2010-11-15T15:09:33","slug":"irelands-resistance-to-bailout-pushing-eurusd-towards-1-3500","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/15\/irelands-resistance-to-bailout-pushing-eurusd-towards-1-3500\/","title":{"rendered":"Ireland\u2019s Resistance to Bailout Pushing EUR\/USD towards 1.3500"},"content":{"rendered":"

By Greg Holden<\/strong> – Ireland\u2019s insistence to resist taking funds from the European Financial Stability Facility over the weekend has stirred the euro in today\u2019s trading. While the US dollar has been gaining against its rivals<\/a> due to European instability and a recent wave of quantitative easing (QE2), this sovereign debt issue<\/a> now facing the euro zone has caused a few setbacks in euro trading.<\/p>\n

The concern is over the widening of yield spreads for euro zone debtors \u2013 mainly Spain and Portugal. If Ireland refuses to take funds, it risks allowing these yield spreads to widen further, putting additional strain on the already-struggling Spanish and Portuguese economies. If Ireland, does take the funds, however, it allows itself to become further indebted in a time of crisis.<\/p>\n

Not taking part, it seems, would be beneficial for Ireland, but allowing the European Facility to bail its institutions out would diminish some of the pressure which has been mounting throughout the region.<\/p>\n

Countries like Germany, to say nothing of Spain and Portugal, would like to see Ireland get bailed out for a number of reasons, including that mentioned above. But also because Germany would like to see the Facility become a more permanent feature of the European financial system. Such a safety net would allow more flexibility and less uncertainty during times of crisis.<\/p>\n

Since the start of these recent debt concerns<\/a>, we\u2019ve seen the EUR plummet against its primary counterpart \u2013 the USD \u2013 from a high of 1.4281 to its current price, over 600 pips lower, near the 1.3625 level. We can see in the chart below that a significant psychological barrier is approaching at the 1.3500 price level. Should it breach this region, we could see a wave of profit-taking push the pair lower in the short-run, with a potential target near 1.3350, and room for additional bearishness.<\/p>\n

EUR\/USD \u2013 Daily Chart<\/a><\/p>\n

\"\"<\/a><\/p>\n

Forex <\/strong>Market Analysis provided by ForexYard.<\/a><\/strong><\/em><\/p>\n

\u00a9 2006 by FxYard Ltd<\/p>\n

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ireland\u2019s insistence to resist taking funds from the European Financial Stability Facility over the weekend has stirred the euro in today\u2019s trading. While the US dollar has been gaining against its rivals due to European instability and a recent wave of quantitative easing (QE2), this sovereign debt issue now facing the euro zone<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15413","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=15413"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15413\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=15413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=15413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=15413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}