The value of the common currency of the European Union gained against the U.S. dollar on Wednesday following speculation that Greece is set to take action to remain part of the 17-nation bloc as the country prepares for a second round of elections this weekend, Bloomberg reports.
The euro also gained against the Japanese yen as the Aegean nation prepares for Sunday elections. The first round of elections in early May did not produce a clear victor, which spawned increased concerns about Greece's stability and capacity to remain in the euro bloc.
"Markets are very uncertain," chief currency analyst Peter Rosenstreich with Swissquote Bank told Bloomberg. "When it becomes a coin toss, and there is the possibility of significant price action in either direction, traders are likely to look for a neutral position. It doesn't take much to push the euro up in this market condition."
During the past six months, the euro has dropped 3.6 percent of its value against the world's reserve currency as it has emerged as the worst-performing of the 10 developed nation monetary units that the news service tracks.
Also propelling the upward drive of the euro on Wednesday were stronger-than-anticipated economic data in the euro zone, The Wall Street Journal reports.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
