Allianz SE, a German insurance company, has published its report, which says that in Jan-Sep 2011 the company’s proceeds shrunk by 2.4% down to €78,5B. The news can contribute to the possible strengthening of the common currency.
The report provided by Allianz SE also shows that in Q3 2011 a great amount of Greek bonds (€198M) was written down. Despite that, the company managed to gain profit.
Another factor that may support the common currency is the ECB’s interventions in the market of Spanish bonds. The duration of the interventions is unclear. However, there is confidence that the bank will stay in control of the situation.
Later on Friday EURUSD rallied and formed a potentially reversal upswing – wave A/B. However, the Department of Masterforex-V Trading System says it is too early to speak about a change of trend as the MF pivot 1.3838 is still not broken. If the downtrend continues, the currency pair will find support at 1.3405. If the price goes further up, it will have to form an upward FZR at 1.4246 in order to reach 1.4376.
