Serj Panchuk
According to Jörg Asmussen, member of the ECB's Executive Board, the central bank will be purchasing bonds simultaneously with the transactions made by the EFSF/ESM. In order to receive financial aid, eurozone nations will need to file an official request. According to him, the bond purchase plan will be implemented only if the ECB gets the status of a privileged lender.
The bond purchase program is still in the process of development. Mr. Asmussen confirmed the ECB’s intension to act in compliance with its mandate.
As for the eurozone prospects, he doesn’t expect a major improvement in the coming months. Despite the fact that some risky eurozone economies have been efficient in solving some of their problems, these efforts are not enough to resolve the crisis. He assumes that it will take more time, money and effort to overcome the debt crisis in Europe.
The chart below, courtesy of , reflects the current state of affairs in the market of EURUSD. The currency pair keeps forming a major upswing represented by wave C or 3 of level Daily.
If the price overcomes the 1.2587 high, a further rally may encounter resistance at 1.2592/95, 1.2690. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.2464 (as shown below).
Serj Panchuk
