At the end of last week’s Forex trading sessions the euro was climbing following popular beliefs, among traders and investors alike, that a ‘rock solid’ bailout plan for Greece’s faltering economy had been reached. However, during the start of this week the euro excitement and appetite slumped as analysts await the approval of new austerity measures by the Greek Government.

Early on during the London trading session Forex traders at eToro saw the EUR/USD currency pair trading down 0.7 per cent at $1.4191, just a short way above the three-week low of $1.4073, which the pair fell to last Thursday, but why is the euro hurting so badly right now and why do investors get so excited following these bailout plans?

It would seem that every time a bailout package is offered for a suffering Eurozone economy the market goes mad, forgets the problems that caused for a bailout to be required in the first place and buys euro by the boatload. Then, once the government of that nation starts umm’ing and ah’ing about how they intend to pay back the billions of euros that they’re being offered, Forex traders and investors drop the euro like a hot potato, selling the single European currency as if it was cursed. It’s surprising to see just how short sighted the market can be regarding this matter!

So what lies ahead for the failing euro? Will there be more to’ing and fro’ing as good news then bad changes the fortunes of the euro or will investors start to be more cautious in their approach to buying euros following the slightest positive news from the EU? If you want to speculate on the fortunes of the euro, or a great many other currency pairs, head over to eToro by visiting www.etoro.com, where you can open a new Forex trading account in minutes.

Related posts:

1. Renewed Appetite For Risk
2. Euro May Benefit From An Interest Rate Rise
3. Euro Currency Pairs Sliding Again
4. Forex Traders Avoiding The Euro
5. Euro Falling Against The US Dollar

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