06 July 05:58 AM
Forex news, EURUSD.
EURUSD remains under pressure due to numerous problems of the countries of Eurozone. Investors have not been impressed by the support plan to Spanish banks – the country’s bonds keep rising. Madrid has displayed bonds with various maturities, but for higher percentage – 10-year bonds have been sold at record rate, namely 6.4%.
Greece, as admitted by the country’s new Finance Minister Yannis Sturnaras, has for some time failed to follow EU requirements on reduction of state expenditures. Thus, IMF made it clear that such craftiness would not help and that there would be no concession. If in the nearest future Athens do not receive another tranche, amounting to 31 bln. euro from the EU, the country’s budget will run out.
In such circumstances, European Central Bank has lowered the basic credit rate by 25 points, to 0.75%. ECB deposit rates have been lowered to zero for the banks of Eurozone. Other measures on watering-down monetary policy are yet expected.
According to the specialists of the System of Early Prediction Sub-department of Masterforex-V Academy, at Forex market EURUSD continues h1 down wave "С". Correction to it is formed at lower timeframes. The potential of reversal trend to this correction is to be carefully observed; at this point, though, there are no signals of such.
Analysis by: Alex von Stachelkopf, analyst of Forex EURUSD Department, trader of SRP Sub-department of Masterforex-V Academy
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