Thu, 22 Dec 2011 05:12:00 +0400
Forex news. The web-site of European Union displays a video message from EU President Herman Van Rompuy, in which he announces that another meeting of EU heads has been planned for January 30, 2012. Formally, the problem of unemployment will be the key topic of discussion, whereas in fact the issue of Eurozone debt crisis will certainly be raised.
In general, the message is rather positive: "We are to take drastic measures in the sphere of unemployment. Providing financial stability within Eurozone is of major importance for our future. This year we have made significant decisions to fight the crisis of sovereign debt. Almost all countries, members of the union, are holding reforms aimed at rising the competitiveness of our companies and strengthening public finance. There is a social way out from crisis".
As a balance to the official optimism of European Union, RBC Daily newspaper has published a translation of Nobel Prize winner in economics Joseph Stiglitz’s view on current situation. Its main idea can be summed up as "World is on the point of new chaos". Stiglitz supposes that the best thing about the expiring year of 2011 is that it has probably been better than the coming 2012.
At FOREX market EURUSD currency pair is forming a rising wave "С" of h1 level, which corresponds to sub-wave "с" within the ТР (Turning Point) of h4 level.
4th sub-wave is being formed as a part of wave "С". As soon as it is over, the current rising trend will probably continue, provided that there are no signals about its termination. In such a case, point 1.3183 will be the nearest target, as stated by the specialists of the System of Early Prediction Sub-department under the Department of Masterforex-V Trading System .
SRP Sub-department under the Department of Masterforex-V Trading System will signal about the change of the situation or trend.
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The talks between the US President and the Republican part of the Congress on the debt ceiling issue finally brought first results. The Republicans officially announced their decision to approve a $2.4 trillion increase in the federal borrowing limit (or the debt ceiling). Consequently the expected August default of the US economy seems to be at least postponed. However, on July 14th Moody's Investors Service unexpectedly warned the US about reconsidering its credit rating.
Forex news. The data on GDP has proved surprisingly high – 0.8%, although economists were predicting the growth of a little less than 0.5%, whereas Reserve Bank was expecting only 0.3%. A devastating earthquake in February had a strong influence on the country’s economy; however, as it turned out, this had a minor influence on manufacturing sector, which was almost unaffected. Rapid growth was mainly achieved by means of manufacturing and, although some enterprises in Christchurch were disabled during the earthquake, most of them continued their work.
The current week started with another unpleasant surprise for investors. The eurozone’s periphery keeps being feverish. Before the EU leaders decided on the Greek debt there emerged problems in Italy and Portugal (read the article “Credit rating of Portugal : troubling sign for investors and the whole EU?”). On July 11th Italy’s 10-year bond yield hit a new record high (5,46%). Investors keep being worried about the eurozone’s growing debt crisis while getting rid of some risky and unreliable Euro T-bonds.
Some investors may consider Austria and Germany as something united: common ethnic origin, common language, close cultural and historical ties etc.
Last short week S&P500 index continued its upward movement; however, on Friday it has bounced from the upper margin of horizontal channel, in the framework of which it has been remaining for several months. Considerable support to the market has been provided by demand for oil, which has increased amid positive expectations towards economic recovery.