The interest rates are stable today, on largely the same news: The Euro community has promised almost $1 billion in “safety net” assistance to the European nations most in need. And I understand, as of this morning, that this is exactly why the interest rates of Greece, Spain and Italy have decreased (in Greece’s case, from 12.5% to 7.5%.) This is because the EU community is buying those countries debts, bringing them down to that level. None of this conveys that the situation is resolved — in my mind, just the opposite. All nations everywhere need to do a check on their profligate spending; or look to get a closer and more personal look at what Greece is going through.
For the meantime, no significant news is different; and it’s all a matter of investors deciding whether or not they think the EU action has “contained” financial challenges to the European community. Some are stating that this assistance is in fact the “nail in the coffin” of the Euro, as it only served to allow them to continue to spend unabated, without really doing anything (read, fail) to fix the real problems.
Technically, anything closing above 3.63% will signal a reversal in trend that will likely move toward 3.65%; and anything closing below 3.43% will signal a trend that will likely move toward 3.31%. Currently, we’re hovering at 3.5%. Support numbers are at 3.43 and 3.41%; and resistance numbers are at 3.65 and 3.74%.
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