Portugal will not be able to avoid negative consequences of worsening economic situation in Eu in general and in Spain in particular, as the country is main trading partner of Lisbon. The country’s tax revenues are falling, recession has reached 3% of GDP. National debt keeps rising: this year it is expected to amount to 114.4% of GDP, in 2013 – it may reach 118.6%, and it will start falling only in 2014.
At the same time, report of IMF bears optimism concerning economic reforms in Lisbon, which started last year in exchange for financial aid that amounted to 78 billion euro. After a year economic expertise was held; according to its results, another 4 billion euro tranche of financial aid has been provided.
This will enable Portugal to avoid open market borrowing, as its cost remains extremely high even despite the decline from 17.4% to 10.6% in the course of last six months.
According to the specialists of the System of Early Prediction Sub-department of , at Forex market EURUSD continues upward correction within h1-h4 range as an answer to local tranquility within eurozone; complex wave B may be formed within such correction.
If such scenario is implemented during the day, targeted points 1.2218 and 1.2171 may be reached. Such variant will fail if impulse structure of last uptrend of EURUSD remains and current maximum is renewed afterwards. In such case, wave C may start within mid-term correction, its target points will include 1.2311 and 1.2371.
Analysis by: Alex von Stachelkopf, analyst of Forex EURUSD Department, trader of SRP Sub-department of Masterforex-V Academy
