Daily Market Review 20 of September

The economy in the USA still experiences a lot of problems: slow growth, stable high level of unemployment, great debt levels. So the perspectives are quite sad and whoever is in the White House next year will have to address all those issues. Perhaps soon there will be a recession and the outcome will depend on the fiscal policy of the USA. The companies already cut the expenditures because of the potential threat of tax raise and spending reduction by 600 billion Dollars. But even if Congress makes a deal and the fall is not going to happen the next year will be a hard one. Meanwhile the leading analysts already start to look away from buying the Euro. It acquires the status of quite unreliable currency.



Yesterday the Euro was trading in the range 1.2992 - 1.3084 with further dip to 1.3016. The correction levels are 1.2904, 1.2818 and 1.2730. Analysts of the leading banks swiftly reconsider their forecast about Euro to downgrading.

Short term support at 1.294, resistance at 1.299


Yesterday the Pound depreciated against the US Dollar from 1.6269 to 1.6185 with subsequent rise to 1.6220. Thus we already have three levels of correction - 1.5974, 1.5880 and 1.5780. The daily indicators at the moment comply with strong overpricing of the British currency, which is quite dangerous because of potential fall of the rate.