The changes of the Greek debt crisis are still containing the market sentiment. The single currency has been supported with the beginning of this week after the weekend release of the 30b euros European rescue plan for Greece trading above 1.365 versus the greenback before falling to 1.356 again yesterday after failing to break 1.37 on a profit taken wave across the broad after this significant rising. The rescue plan has calmed down the market which was worrying about the Greek ability to finance its debt through the IMF and the credit market by the current expensive way without European funding support.

However the single currency is still in need to get that the worst has become behind of us and not still ahead of us which is not materialized yet to the market which is still watching a very slower pace of growth in the euro area comparing with US after the credit crisis negative impact on the EU economies which pushed the governmental spending up for spurring investment and growth on the account of their budget deficits which are threating the market confidence and the recovery itself right now with market focusing on the consequences of the debt building in Europe.

The greenback has been underpinned recently by the new added jobs of march to the non-farm payroll by 164k and the surprising rise of US ISM manufacturing index of March to 59.6 while the market was waiting for 56.5 as the same as February which suggest a closer than expected tightening action from the fed this year. By god will, we wait later today for the US trade balance of February to be -38.6b$ from -37.29b$ in January.

Best wishes

FX Consultant

Walid Salah El Din

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