Euro spiked at EU Summit leak

Thursday, 21 July 2011 03:45

EUR/USD flew over the bar a little before U.S Unemployment Claims.  The Euro spiked from a quiet upward pace of 1.4180 to more than 40 pips around 1.4220.  The trend upwards continued to push the euro up to 1.4290; in less than 10 minutes.

The reason for this spike comes from leaked EU summit documents on information for the Greek bailout plan.  Draft conclusion contains that EFSF will be able to recapitalise financial instutions with loans; recapitalisation for Greek banks will cost approximately 25 billion euros.  More information conclude that rates on loans will be set at 3.5%, down from 5.5% and an extention from 7 and a half years 15 years will be made on EFSF loans.  All this coming from Eurozone documents.

Currently, the Euro is keeping strong at 1.4285 against the U.S Dollar.