The Opening Bell: Where currencies start on Wednesday, February 22, 2012

The Opening Bell: Where currencies start on Wednesday, February 22, 2012

By Dan Bell

The second bailout package for Greece was granted yesterday with 130 billion Euro approved, seeing the EURUSD rally to just shy of 1.3300.

Those who expected a stronger EUR and risk rally are suggesting the caution now is based on unrealistic GDP targets, the fact that Greece is actually still in the Euro, and that austerity measures generally mean no growth.

The Dow Jones rallied through the major psychological level of 13,000 after the US markets first chance to react to China’s reserve ratio adjustment on the weekend.

This level hasn’t been seen May 2008.

US Stocks have since resided, mirroring the lack of Euro-phoria seen overnight, Dow currently -0.09%, S&P -0.08%, although CRB index +1.58% lead by Cooper which was 3% higher at it’s peak

The NZD opens against the crosses at 0.6295 EUR, 0.7815 AUD, 0.5280 GBP, 66.35 JPY

Little in domestic data today, all eyes remain on Europe.

-------------

Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.