Stocks and Euro Swelling On Italy Announcement

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According to InvestTechFX, the Forex trading firm, a jump in retail stocks from a strong Thanksgiving weekend sales results, along with rumors of new solutions emerging to deal with Europe’s debt crisis has the equity markets on a considerable upswing. Whether this is a technical correction after last week’s dismal results, or a new uptrend after a test of yearly lows remains to be seen. Buying activity has definitely increased as online Forex traders perceive value in the euro currency.

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Early morning activity on the Dow is up almost 3%; both the S&P 500 and NASDAQ indexes are above 3% compared to Friday’s close.

Part of today’s upward bounce in stock and euro currency values was the news that the Italian Senate approved economic reforms intended to prevent a duplication of the measures undertaken by the EU to stabilize Greece.

Such measures, if required, would be catastrophic for the EU. Italy’s economy is number three in the Euro zone number eight in the world, which makes it far too large for a Greek style bailout.

The Dollar has declined as investors seemed willing to tolerate additional risk by moving funds back into the equities markets. The Euro has gained on the Dollar. Early New York session Forex currency exchange trading has the euro close to $1.34, almost 200 pips above Friday’s close.

Financial markets often display this type of price activity when a downward trend that tests long term lows fails to establish a new low point. Bargain seeking buyers rush into the markets hoping to make rapid profits from dramatic reversals. Others who caught the trend on the way down cover short positions with offsetting buy orders that contribute to a rise in prices.

FX trading offers the volume and liquidity that only a $4 trillion a day market makes possible. Trading costs with a Forex Electronic Clearing Network (ECN) makes low-cost currency trading available to the average investor.

InvestTechFX offers the average investor the transparency to trade currency pairs with the confidence that comes from knowing that you are not trading against a market maker broker that can wipe out your trading profits with variable, unpredictable spreads, re-quoting of currency prices and other tactics that stack the deck in their favor. They offer fixed spreads of as low as .5 pip on six major currency pairs, 24/5 customer service and a variety of trading tools to assist the trader.

For more information on low minimum deposit foreign exchange trading accounts, visit the leading Forex ECN provider, InvestTechFX at http://www.investtechfx.com.

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