Greece Bailout Speculation Boosts EUR

By IBTimes Staff Reporter | February 09 2010 5:34 PM

Given the flurry of news surrounding Greece debt concerns, the EUR has surprised many with bullishness following the speculation of a Euro-Zone bailout of Greece, despite Germany's reluctance to acknowledge such an effort. While the 16-nation currency gained against its primary rivals, the Scandinavian currencies actually fared better than the EUR.

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The Swedish, Norwegian, and Danish Kroner all gained modestly versus the euro throughout the past few days, and today was no different.

The EUR/SEK has continued to trade within a bearish channel, and today's euro news pushed the pair from 10.25 to as low as 10.10 in today's trading, highlighting the Swedish Krona's continued rise from last Thursday. The EUR/NOK experienced similar behavior with a significant rise in the value of the NOK from a price of 8.2395 to 8.1375 by the close of European trading.

A number of Scandinavian investment firms were also anticipating a rebound of the region's currency values, citing an over-correction to the SEK, NOK and DKK. The correction has largely been taking place steadily over the last four trading days, and fundamental news in Europe seems to carry little impact. Scandinavian currencies have each entered bullish channels against the EUR and, despite the natural fluctuations of these trends, the overall direction seems to be positive.