In the weekly interview on Forex TV, I spoke about the main events facing us this week, the upcoming bailout for Portugal and also discussed three pairs:EUR/USD, GBP/USD and USD/JPY. This includes technical levels and the events that have an impact on them. Enjoy!
The pressure is mounting on Portugal to take a bailout. The unconfirmed reports were followed by denials, that were followed by rising yields, that will eventually by followed by a formal aid request and negotiations. This is our lesson from the previous rounds in Greece and Portugal.
The problem is with the cost of borrowing money to pay previous debt – it’s just too expensive. Portugal already paid a lot last week, and is facing another bond auction this week.
Regarding the pound, there’s a lot of uncertainty, but the general direction doesn’t look too good.