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Basing Your Investing Decisions On Info Out Of Europe? Don’t…

Everyone knows that one of the most important parts of a wise investing decision is solid information. If you are planning to move into a specific currency position, you have to have some justification for doing so. Even if you are a purely technical trader, you will still want to have a look at some of the fundamental data and news released to ensure that you are not walking into a storm.

So, where should you be getting your news? Who should you listen too? If the past few weeks have been any indication, the last place you will want to get any of your information from is Europe.

It seems as though nobody can get a straight answer on anything, and when everyone is looking for clear solutions to problems and crisis’, all we are getting is vague, unreliable information.

When there is a major news release coming from Europe, the market reacts big. But, when people actually see what the release entails and start to ask the questions that are unanswered, there is usually just confusion, volatility, and even a turnaround. This is no way to invest, and it is very difficult to make a profit on any instrument when this is the case. Be very wary of where you get your information, and if at all possible, try to avoid trading on any news directly out of the EU.


EU And IMF Can’t Agree On Sustainability Of Greek Debt

With all the attention on the potential resolution to the EU debt crisis and the actions of France and Germany, a large portion of people have totally forgot about the next round of bailout funding that Greece is supposed to receive any time now. But, as you can imagine, there are disagreements on what is realistic and how the funding should be delivered. This time, the conflict is between the IMF and the EU.

As you can probably remember, there were a group of inspectors, coined the “troika”, who spend a while in Greece evaluating the domestic situation there and evaluating the measures that have been taken so far. They left the country last Tuesday and are preparing their reports, which were supposed to be ready for the October 23rd EU summit, but have since been delayed until the 24th. In them, they are pretty much going to say that while the progress in Greece is very slow and overall, they are not happy with the current position they are in, they can’t really wait to deliver any more aid.

But, when it comes to the issue of debt sustainability in the future, the IMF isn’t really satisfied with what was found and want to wait until after October 23rd to decide whether or not to release the next round of funding. In general, though, most people are just writing this off as a way to apply pressure to Greece and aren’t worried about the delivery of the next tranche of aid – it will get there in time.


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