Traders are growing increasingly worried that the political impasse staged by the ruling parties in Greece will ultimately lead to the country’s pull out from the Eurozone which is pushing the common currency lower in Asian trading. Analysts see that the last ditch effort by the Greek president to draw all the parties together is not likely to have a good outcome, and another election is in the cards. Most political observers believe that that will ultimately just give the anti-bailout contingent more political clout. Political uncertainty notwithstanding, what worries one economist about the possibility of a Greek exit is that other E.U. member countries which are also in recession could also consider a Euro withdrawal.
As reported at 12:51 p.m. (JST) in Tokyo, the Euro was trading at a 4-month trough versus the U.S. Dollar, moving as low as $1.2814 at one point in the overnight hours before recovering to $1.2825; some analysts say that it is likely that the EUR/USD pair could soon retest the $1.2624 low of January but others believe that a rebound is in the making as the RSI has dipped below 30%, a sign that the downtrend has been overshot.