Wednesday, January 16, 2013

Enduring Euro 1.3300 Close: Bullish Or Bearish?

Enduring Euro 1.3300 Close: Bullish Or Bearish ?. After trading near the 1330 level during the session yesterday, including a decline to 1.3250, the Euro eventually erode fall yesterday to close the session near 1.3290, 0.15% below the opening price. The euro fell yesterday and fell down 1.3300 level related comments EU leaders said that Euro exchange rate has been too high. But the fundamental data supports risk appetite action Wednesday with a Euro that restore order.

On the other hand, the World Bank officials have downgraded growth forecasts for the global economy in 2013. "The announcement of the performance burden of major currencies, especially the euro against the U.S. dollar," said an analyst Richard Lee. According to Lee, the movement down still likely to occur. "Euro continues decline seen with the closing under the 1.3300", said Lee. "Level is a pivotal level, also we have seen in yesterday's trading. Penetration level may be open space continued testing support at 1.3182 ".

Restore Failed Euro ECB statement

Euro slips versus dollar U.S. dollar due to some profit taking investors on a recent rally and concerns over the region's economy. The euro had gained earlier when an ECB policymaker, Ewald Nowotny, said that if the exchange rate is not a problem that becomes the main focus. The comments contrast with statements Eurogroup chairman Jean-Claude Juncker day before, which saw the Euro exchange rate has been "too high".

IMF Agrees To Help Greece Valued at 3.3 billion euros

International Monetary Fund or IMF has approved assistance worth 3.3 billion euros for Greece as expected. The IMF has delayed approval for almost one year earlier when the organization urged Europe to restructure the country's debt and pressing Greece to change its economic policies. Although tensions have eased in the Greek economy, but the economists argue that it is important for Greece to implement the budget rules and economic policies necessary to get assistance. If Greece could balance its budget this year, Greece will see a cut debt to levels never seen before.

Malta worsening Euro Performance

The euro slid after S & P cut its credit rating of the Republic of Malta from A-to BBB +. Republic of Malta is a small country that also joined the euro zone. However, S & P still gave a stable outlook express condition while Malta still be protected from the political, financial, and monetary ongoing euro-zone. EUR / USD is now trading 1.3272, moving away from a daily high level 1.3324. "The dissolution of parliament on January 7, 2013 Malta will prevent the implementation of the 2013 budget until the next election takes place on 9 March. There are concerns over the government to restore fiscal flexibility and resolve risks caused by government budget decrease government enterprises. Ratio of government debt also has passed 75 % GDP and may continue to increase with the fragility of the economic growth momentum. "

Sterling Fitch Warning Hurting


Pound fell against the greenback after Fitch Ratings warned of the risk downgrade the UK's credit rating. In an interview with Reuters Insider, Fitch said that the UK has the greater risk, may even trigger a credit rating downgrade if the budget report in March showed debt levels continue to rise. Sterling also plunged to near its weakest level versus 9-month Euro as Prime Minister David Cameron prepares to explain the plan of

England broke away from the European Union.

"It is clear if the UK economy amid dogged by uncertainty," said Jeremy Stretch, head of foreign exchange strategy at Canadian Imperial Bank of Commerce in London. "There may also be some lingering concerns about the pursuit of England in Europe next., And it makes the short-term outlook for Sterling to be negative."

Germany Economy Minister Seeing Currencies Euro Overvalued


Minister Philipp Roesler economy Germany declared on Wednesday that he had not yet assessed the euro currency is overvalued, fairly contradictory to comment before the President of the Eurogroup Jean-Claude Juncker. In a press conference, Roesler said that he has a different perspective on the Euro, and also added that the Germans do not have to worry about rising interest rates in the coming year. Observed so far pairing EURUSD fell -0.17% at 1.3281, compared to the previous day at the 1.3304 level. Technically, intraday bias remains bearish but required penetration consistently below 1.3270 area to trigger further bearish momentum testing 1.3215 area. On the upside, looks at the key resistance area of ​​1.3330, as long as it stays below that area there are still opportunities EURUSD weakness.

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