The Italian economy, the 3rd biggest one in the eurozone, is seeing a major recession. According to Istat, in Q2 2012, Italy’s GDP shrank by 2.5%. Even though this was a preliminary report, it matched analysts’ expectations.
The negative tendency confirms that the Italian government is unable to solve multiple economic problems within a relatively short period of time. Some experts assume that the decline will slowdown in the 2nd half of the year.
This is the 4th recession since 2001. Public sentiments are deteriorating as investors are getting more disappointed amid austerity.
Analysts expect the Italian economy to shrink by 2.4% in 2012.
Forex.
According to , EURUSD is rallying in the form of wave а(С)/С started at 1,2133. The closest levels of resistance are 1,2443, 1,2488 and 1,2541. The closest levels of support are the bottom of the Mf sloping channel and pivot 1,2221. If the price breaks and consolidates below them, we will probably see a trend reversal.
