The latest growth seen in most capital markets was mainly caused by the news that the Federal Reserve and the ECB are planning to start another round of quantitative easing in the USA and Europe. However, the markets didn’t react to negative economic news and continued rallying. Eventually, the rally may turn into a major downtrend if the news background remains negative, Nouriel Roubini says.
The expert is sure that the ECB’s decision to start an unlimited bailout through purchasing risky European bonds is not a solution to the eurozone debt problem. It is just an attempt to win some more time to work out another anti-crisis plan. The continued economic recession amid austerity and lending reduction make European governments look for the ways and means of stimulating economic growth and stabilizing markets.
Forex.
According to , the US Dollar index is flattish. The price is moving within the 79,96-78,73 range. The closest level of support is 78,73. The price will have to break and consolidate below it in order to resume the downtrend.
The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 79,95 (as shown below).
