Herman Van Rompuy, President of the European Council, approved Italy’s new austerity plan. According to the plan, the country’s budget spending is expected to be cut by €45B at the expense of tax hikes and a series of social spending cuts.
In the meantime, Günther Oettinger, European Commissioner for Energy, opposes the expansion the European Financial Stability Facility (EFSF), which is currently equal to €440B, because the money is enough to support Greece, Ireland and Portugal . According to him, in October the EFSF will be ready, if necessary, to buy the T-bonds issued by risky economies. Mr. Oettinger assumes that if Italy defaults on its debt, it may well be a devastating blow to the eurozone.
FOREX.
EURUSD is forming wave CH1. The minimal target of the wave (1.4316) has been reached. According to the SRP Sub-department under the Department of Masterforex-V trading system , the next targets are 1.4448 and 1.4496 – the target of wave C H4.
To define the vector of the forthcoming movement we apply the SRP elements and other binary patterns by MF.
