Daily Market Review 10 of July

OVERVIEW


The analysts of the leading banks state that the worst period for the Euro is already behind and this opinion contradicts the anticipation of traders who forecast the deterioration of the economic situation in Europe and also the deepening of the sovereign debt crisis. After the results of the EU leaders negotiations in Brussels on June 29th the decision was made about the criteria of the direct use of the anti-crisis fund assets after the formation of the one regulating institution for all banks in the region. This role will be taken by the European Central Bank (ECB). But traders assume that those measures are insufficient in order to prevent the economic decline in the European Union. So the sentiment of the market is rather pessimistic and most market participants expect recession in Europe.


CURRENCIES


EUR/USD


Yesterday the Euro appreciated against the US Dollar from 1.2255 to 1.2323. Analysts worldwide expect the short term correction after which the pressure of sales will be back to the Euro. The process might continue till reaching the point of 1.2470, whereupon the Euro will be looking for the new levels of Support. 



GBP/USD


Yesterday the Pound grew against the US Dollar from 1.5469 to 1.5533. It is presumed that the British currency in the regime of correction might appreciate up to 1.5690 and then get to the new Support levels.