A Smarter Trade on the Euro
While most Americans were off enjoying the second day of their Thanksgiving holiday, the euro broke out of a two-week-long consolidation to rise to a monthly high against the U.S. dollar. A surprise increase in business confidence was behind Friday's rally, but here's the main reason that the euro has recovered some 70% of its recent losses: Investors are holding out hope that eurozone finance ministers will finally get their act together and disburse their next aid payment to Greece.
Everyone knows the stakes are high, and that not doing this would be disastrous for Greece and for the euro. The country is poised to run out of money by the end of the month, and if it does not receive another aid payment, it will be forced to default on their loans, which would endanger the recent recovery in risk appetite. While eurozone finance ministers had failed to make an announcement last week, their decision to resume talks Monday indicates that they are committed to announcing aid disbursement and soft debt-restructuring measures as soon as possible. If a deal is sealed, a major source of near-term risk for the financial markets will be eliminated, and lead to a relief rally in the euro....358 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.