Helena Izotova
Forex news, Euro rate. European Central Bank (ECB) is to buy more bonds of problematic countries in order to support Italy and prevent the “catastrophic” decline of common currency. As informed by Reuters, this statement has been made by the head of Fitch rating agency David Riley.
During his lectures in Europe Riley has warned that the crash of Euro will become a disaster for global economy. Although Fitch does not yet work by this scenario, this may happen if Italy fails to find a solution to its debt problems.
“The end of Euro would be a global disaster,” said Riley.
Riley has also appealed to European Central Bank to put away the current unwillingness to buy more government bonds of problematic countries, such as Italy.
“Will Euro manage to survive without active participation of ECB? Personally I think it won’t,” said Riley.
Fitch has also warned that the perspectives of Eurozone economy have got worse; however, the agency does not expect it to get worse at least this year.
According to Riley, France is facing a tight situation mainly due to escalation of crisis.
Greece is a major threat to the zone of Euro. According to him, the situation last year when private investors faced a great loss from Greek bonds has ruined the pre-crisis assumptions that no country of Eurozone can go bankrupt.
What will happen to Euro rate? As explained by the Department of Volume Analysis at , Euro futures is traded close to yesterday’s maximal volume of 1,2707 (1,2702 forex).
If the rate is set below this point, bearish trend is likely to continue, aiming at support provided by yesterday’s local overtrading point of 1,2687 (1,2682 forex), 1,2650 (1,2645 forex), and psychological point 1,2600 (1,2595 forex).
However, if correction to the bearish trend continues, it will aim at resistance provided by points 1,2727 (1,2722 forex), 1,2745 (1,2740 forex), and the current week volume of 1,2782 (1,2777 forex).
Helena Izotova
