25 banks of the Eurozone failed the stress tests implemented by the European Central Bank. The tests were aimed at checking the banks’ financial stability and resilience in case another major crisis breaks out. According to the ECB’s report made on Sunday, the total shortage of capital was amounted to 24,62bn euros, which is currently equivalent to 31,17bn dollars.
The amount of banks that failed and the amount of the deficit turned out to be slightly higher than expected by analysts and investors.
After the test results were revealed, strange as it may seem, the common currency started growing against the US Dollar and reached 1.2690 by gaining 0,25% at the beginning of today’s European trading session.
Despite the fact that 25 banks failed, there was no major bank among them. The biggest share of failures came from Italy (9 banks), Greece and Cyprus (3 banks in each of the countries). Still, the ECB reports that despite the inability to pass the stress tests, the failed banks have already started boosting their money buffers to withstand a possible financial crisis. In particular, 12 out of 25 banks has already covered the shortage of capital this year. In particular, they managed to attract 15 billion euros, which means that the rest of the ailed banks still have to attract 9,47 billion euros to cover the deficit of capital needed to pass the tests.
EURSD Prospects
Today, on October 27th, the common European currency is still going on with this upward tendency started on October 23rd from the level close to 1.2612. According to the comprehensive analysis conducted by Masterforex-V academy, the H1 chart of EURUSD indicates that the rally is accelerating at this point. The experts assume that the bullish prospects of the currency pair are still strong until the defensive MF sloping channels (marked red in the chart below) are unbroken. The levels located at 1,2713 and 1,2738 are the next levels to watch if the price goes up further. The mentioned scenario is shown by the green arrow.
Alternatively, a break below the sloping channels will give way to further lows. This will give the US Dollar a chance to bring the EURUSD exchange rate down to 1,2671 and 1,2634
According to the Binary Options Department of Masterforex-V Academy, buying call options on EURUSD is a better option for intraday Forex traders. The entry points should be sought during retracements. The expiry time is 1-1,5 hours.
