How will Strauss-Kahn’s resignation affect Euro currency?

According to the BBC news, “the head of the International Monetary Fund, Dominique Strauss-Kahn, has been charged by New York police over an alleged sex attack on a hotel maid”. It seems that now his participation in the forthcoming presidential elections is doomed despite the fact that most of the French support (or at least used to support) Dominique Strauss-Kahn.

Yet the most terrible thing about the incident is unpredictable economic consequences. Most analysts are sure that his arrest is going to ruin the fragile stabilization process recently seen in the EU. For Greece, which desperately needs more extra financial aid, it may be a fatal blow.

Moreover the negative resonance coming from the scandal threatens the image of the entire IMF. Most European countries are concerned about the current situation as they understand that Portugal , Ireland and probably some other countries may need financial aid as well.

It is not a secret that Strauss-Kahn planned to meet with Angela Merkel and EU finance ministers in order to solve the Greek problem. Now this and many other problems may stay unsolved for a long time.

At the moment the Euro futures 6E is recovering against the downfall seen over the last 2 weeks. It has already reached 1.4190 (the volume cluster of 37000 lots). Consolidation above the level may provoke a deeper upward pullback. Otherwise the common currency will keep losing its ground.

 

 

The Department of Volume Analysis, Masterforex-V Academy

 

 

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