Mario Draghi, President of the ECB, says that despite all the pessimistic forecasts, the common European currency is safe and won’t see any collapse. He is sure that tighter integration and cooperation within the EU is inevitable.
The ECB’s major goal at this stage is to preserve the Euro as a part the bank’s. Therefore, the bankers will take all the steps necessary to achieve this goal.
The President of the ECB is optimistic about the forecasts for European economies. He underlines that the eurozone will see economic growth in late 2012.
The Euro cannot take advantage of the weakness of its major rival (the US Dollar) as the former is not so attractive any more. Investors distrust the eurozone while Spanish bond yields hinder any attempt of the common currency to show stable recovery.
Yesterday’s Spanish bond auction failed to come up to analysts and investors’ expectations. Lower demand resulted in lower yield. The market shows that the situation is critical. Madrid may well address for full external financial aid in order to save the Spanish economy from collapsing.
Last week, the Federal Reserve failed to clarify the situation over its further monetary policy. So it is not clear, whether the FRS will initiate another round of quantitative easing in order to stimulate the weakened US economy.
The RP department of Masterforex-V Academy reports that EURUSD keeps fluctuating within a narrow price range close to the 2-year low (1,2161):
These days, anyone can make money trading Forex and other financial markets. The opportunities are almost endless. Still most traders still lose in the long run. While some lack experience and skills, others fall prey to emotions or fail to stick to sound money management. There are many reasons for losses. Few people actually make money in the long run because they treat trading seriously like a full-time job and work hard to achieve their goals. They use technical and fundamental analyses and strictly observe money management rules. They use various tricks and techniques to put the odds in their favor.
Apparently, beginners have difficulty trading financial markets without knowledge, skills and experience. Becoming a professional trader requires diligence, patience and time.
However, today’s Forex industry offers riskless moneymaking opportunities, which require no trading skills. You can make money without trading Forex. One of such opportunities is offered by FBS, a major Forex broker. The broker claims to offer “The most profitable and efficient IB Program on Forex”…
Yesterday, on May 21st, was a notable day for the eurozone. The Euro Parliament approved the Euro Group’s idea to use major deposits over €100 000 in emergency situations to save a risky bank. Deposits under €100 000 are ensured by the compensation scheme.
Most beginning traders are sure that it is possible to trade Forex profitably and easily. They usually assume that perfunctory knowledge is enough to make money in financial markets in general and Forex in particular. Alas, they are wrong. Obviously, it is possible to trade Forex profitable. However, it cannot be done without specific knowledge, skills and experience.
This delusion is the main reason why they lose in the long run. As a result, most of those losing beginners get disappointed at Forex and abandon the idea of becoming a winning trader forever. Some of them even start call it a scam or fraud. Some of them put the blame on brokers while others refer to bad luck.
Essentially, Forex has nothing to do with scams. Apparently, you may come across some dirty broking companies but that has nothing to do with Forex itself. Besides, such scammers can easily be avoided by following a few simple rules. However, this is another story (Masterforex-V Academy told us many times how to choose a reliable broker).
Today, on May 20th, Forex started a new trading week. There have been no radical changes in the market of EURUSD so far. The previous bearish move was elongated by some 200 points. The price keeps developing the ABC pattern of wave level Daily. The move hasn’t reached any of the given targets so far.
It seems like more and more experts feel bearish on the near-term prospects of the common European currency. Some of them say that EURUSD may even drop down to 1,15 in late 2013. If this is the case, this will be the lowest level in 10 years.
Yesterday, on May 15th 2013, Eurostat published a eurozone GDP report, which reflects the economic dynamics in al the 17 countries. The figures turned out to be much worse than expected. In Q1 2013, the aggregate GDP dropped by 0,2% as compared to the previous quarter. At the same time, tere was a 1% decline year-over-year.