Yuriy Ukazkin
The Euro Commission has downgraded its forecast for the budget deficit and debt burden in the eurozone. They expect the eurozone’s budget deficit to reach 3.3% and to drop down to 2.6% in 2013. As for the EU in general, the decline will likely be less intensive: 3.6% in 2012 and 3.2% in 2012.
The experts are sure that Spain will fail to reach the budget targets in 2013 and 2014. The deficit will reach 8% of GDP this year and 6% of GDP in 2013.
However, Greece can see its budget deficit declining form 9,4% of GDP in 2011 down to 6.8% of GDP this year. France and Great Britain won’t be able to reach their budget targets within the next 3 years. Germany and Italy will retain the current levels of their budget deficits: 0,2% and 2,9% GDP correspondingly.
Forex.
The chart below, courtesy of , reflects the current state of affairs in the market of EURUSD. The currency pair is trading within the scope of wave c(C ) of Daily. The closest levels of support are 1,2720, 1,2606 and 1,2473.
The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 1,2854, (as shown below).
Yuriy Ukazkin
