The global financial system has become unstable several months ago, the IMF concluded in its latest report on global financial stability. It is no surprise that the eurozone has been the main source of instability as the debt crisis in the region keeps escalating.
The bond yields of most eurozone countries have grown up to record levels. In September 2011 the record high yield of 400 base points was typical of the T-bonds emitted by Ireland, Portugal and Greece after they received financial aid from the IMF. Later Spain , Italy and other countries joined the company. Moreover, Austria, Belgium and even France are about to find themselves in the same list.
The situation is getting gloomier as the EFSF cannot withstand the financial load - it is simply running out of money and consequently cannot close all the financial gaps at a time. Even if it is reloaded, the eurozone will still be “feverish”. Moreover, rating agencies keep downgrading the credit ratings of eurozone countries. S&Р seems to be about to cut Greece’s rating to junk.
The eurozone instability resulted in the IMF downgrading its forecast for the global economic growth from 4% down to 3.3%.
According to the Department of Market Volume Analysis of , over the last few days the 6E futures contract has been flattish. The closest support is 1.3046. The current trading volume is 29500 lots.
