Excerpt from: Forex Commentary
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| March 04, 2010 | | Euro gets boost, but then falls back in forex trading | The European Central Bank has kept its benchmark rate steady at 1%. This is unsurprising, given the fact that the ECB cannot afford to raise interest rates in wake of the Greek crisis.
Indeed, even though Greece has decided to implement austerity measures to help get its financial situation under control, the country is far from being out of the woods. The ECB needs to make sure that it is easier for countries like Greece to finance debt.
The euro got a bit of a boost in forex trading on the news, seeing that the euro zone is ready to pull together. However, those gains are gone now, thanks to the fact that the move was wholly expected and not likely to make a lasting impact on the market.
Also as expected, the Bank of England kept its benchmark rate steady at 0.5%.
| Topic Tags: Bank of England, ECB, euro forex trading, forex trading, Greece, interest rate, U.S. dollar | |
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