The worries about the Greek debt future have accumulated again weighing on the single currency which failed to be sustained versus the greenback above 1.35 in the recent days with a low trading volume which is trading currently below 1.34 as the market is worry about the ability of Greece to meet the IMF fulfillments costs as it was hoping to have its rescue plan from inside of the Euro zone with no intersections from the IMF.

From another side, the greenback is still finding support from the new added jobs of march to the non-farm payroll by 164k and the surprising rise of US ISM manufacturing index of March to 59.6 while the market was waiting for 56.5 as the same as February. The data encouraged the greenback holding as they increase the interest rate outlook and suggest a closer than later tightening action from the fed which is expected to give a brighter economic statement this week and may be further voters favoring tightening beside Hoening this meeting which can give the greenback another strong push.

While we are waiting for the ECB to hold its current accommodative stance unchanged holding the interest rate at 1% again this week capped by the smooth recovery in the Euro zone comparing with US and the current financial instability because of the growing debt worries problems among the European countries and the need for paying the most smaller possible price for meeting its wroth as the market sentiment toward holding the single currency is still in need to get that the worst has become behind of us and is not yet ahead of us to underpin the single currency again which is not materialized yet to the market who is still watching a very slower pace of growth in the euro zone comparing with US after the credit crisis negative impact on the EU economies which pushed the governmental spending up for spurring investment and growth on the account of their budget deficits which are threating the market confidence and the recovery itself right now with market focusing on the consequences of the debt building in Europe.

Best wishes

FX Consultant

Walid Salah El Din