Apparently the euphoria that was in the market last week has disappeared completely. And analysts of the leading banks already announce their bearish sentiments about Euro. They anticipate the renewal of its weakness and reaching the level of 1.20 in the following 12 months. World analysts forecast the downgrade of the Euro rate to 1.23 by the end of the next year. The reason of pessimistic prediction about the Euro is that the European economy doesn’t demonstrate the economic growth and also doesn’t show any symptoms of the situation change in the foreseeable future. Recalling the goals announced by the ECB head Mario Draghi the actions of the Central Bank are about an attempt to try to settle the situation in the short term. To be more specific the goal is to reduce the borrowings in Spain and Italy. The markets calmed down only in terms of fears of the risks of a complete Euro zone collapse. But obviously this is not enough to get back the interest of investors.
Yesterday the Euro depreciated against the Dollar from 1.3084 to 1.2992. The Euro is in the correction also due to absence of positive data. The level of 1.2483 is the Support below which Euro will fall dramatically in the direction of 1.2020.
The Pound depreciated against the US Dollar from 1.6269 to 1.6185 with subsequent bounce to 1.6231. Apparently buyers of the British currency rely on the constant interest to the asset. But normally it doesn’t happen. The daily indicators suggest that the currency is over purchased. Most likely the correction of the currency is only a matter of time.