Analysts worldwide mark that Euro buyers in the near future shouldn’t count upon more or less significant achievements and hope for the correction development might not live up to the expectations. Though the situation with Greece is developing in accordance with the favorable scenario the EU has got a lot of other problems that might become the main focus in the market. Analysts mention that the increase of the IMF capital hasn’t become an essential positive event, taking to consideration quite modest scope and also the fact that this money is not immediately available for the EU states. European officials are not in a rush to take some decisive actions, while the FRS perhaps will also remain neutral at the meeting today in order to leave an opportunity for maneuver in case of the situation deterioration. Probably the market participants are expecting too much from the FOMC. The aggravation of the economic statistics from the USA meanwhile can’t be called dramatic and the reduction of the inflation expenses was quite moderate. The probability of TWIST operation exacerbation is one to three at the moment but the sentiment in the market is more aggressive: for the majority the extension of the TWIST is a minimum and some expect if not QE3 but at least a hint to conduct it in future. In any case there is no scenario seen for the Euro other than continuation of decline.
Yesterday the Euro appreciated against the US Dollar from 1.2637 to 1.2742 with further dip to 1.2659. The main negative factor that doesn’t allow the Euro to grow according to analysts is the inaction of the EU officials in the struggle against the crisis and the intensification of the debt crisis. That’s why market in general actively sells the Euro.
The Pound fell against the US Dollar from 1.5776 to 1.5674. The price decline continues to attract interest to buying but the process requires special attention to it. The Resistance is at 1.5800. The support is around 1.5470.