Despite analyst’s optimistic forecasts, the eurozone’s GDP declined by 0.5% in 2012. In Q4 2012, the GDP dropped by 0.6% after a 0.1% decline a quarter before. The eurozone economy has been in recession for the 3rd consecutive quarter. Moreover, the pace of the economic decline in the last quarter of 2012 is the highest one since 2009.
The fact that the decline started from the eurozone’s 2 major economies looks disturbing. In particular, the German economy weakened by 0.6% for the first time in 3 years. The French economy declined by 0.3% during the reporting period. Italy, the eurozone’s 3rd biggest economy, is down by 0.9%.
At the same time, the current strength of the common Euro currency affects European manufacturers and exporters. At the same time, domestic consumption keeps declining as well.
Forex.
The chart below, courtesy of the SRP Department of , reflects the current state of affairs in the market of EURSUD.
The currency pair is likely to keep declining. The closest levels of support are 1.3298 and 1.3162.
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Alex von Stachelkopf, аналитик отдела "Форекс, курс евро", трейдер кафедры СРП Академии трейдинга Masterforex-V
