Thread: FBS Holdings: Rabobank about the situation in Ireland

Analysts at Rabobank claim the Irish bailout won’t make the problems of the euro area vanish. On the contrary, they believe that many issues are going to arise in the next few months. The specialists agree with the opinion that the concerns about Portugal's and Spain's debt woes ruined the recent advance of the single currency.

According to Rabobank, the initiative of Ireland's Green Party to conduct new elections may mean that the country will be an object of concern for a longer period of time. The possibility that the party that participates in the coalition government won’t support Ireland’s austerity plan isn’t high, but if it happens euro may find itself under even more severe pressure. Now political uncertainty increases the volatility of EUR/USD.

The bank also commented on China as investors try to make out when the country’s monetary authorities will tighten monetary policy. The expectation of the rates hike will limit the advance of the currencies closely tied to the pace of the world’s economic growth letting US dollar strengthen against Norwegian krone and Brazilian real.

More info about FBS

Thanks to the internet and the popularity of currency trading there is now a wealth of information available for free. Forex, currency trading is all done by the use of fundamental and technical data; it is the knowledge of such data that traders use to determine whether to buy or sell a currency. The data is interpreted on a chart and it is these charts that a potential trader must learn how to use to become successful in the currency markets.