The Europe we saw at the beginning of today’s session was very
different than the Europe of yesterday, at least from a trader’s perspective.
Euro-zone leaders came to an
agreement on Greece that lowered interest rates,
returned some of the money made off of previous loans, and setup the release of
the next 34.4 billion Euro aid tranche in December. The Euro has now erased all
of the gains following the Greece announcement and is trading slight above
1.2950 against the US Dollar in currency markets.
UK gross domestic product for Q3 confirmed 1.0% economic expansion
over the quarter, as the Olympics and previous quarter’s Jubilee holiday gave
the UK a one-time spike in growth. Office for National Statistics’ release,
output in production industries rose by only 0.9%, down from a previously
estimated 1.1%. Service industry was confirmed to have seen a 1.3% rise in
output.
The US Dollar rose a bit when Fed member Fisher said during a
speech in Berlin that he advocates setting limits to QE as soon as the next
meeting. Fisher said that the US’s biggest problem is unemployment and that
inflation is under control in the US.
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