Daily Market Review 24 of October
OVERVIEW

The crisis is dragging the global economy and the financial markets down. Thus there is no wonder that there will be so many reevaluations of the principles of global economy worldwide that await us in the future. If some 10-15 years ago it was possible to distinctly divide countries into successful and lagging in economic development. Now doing it is quite difficult, because the series of subsequent slumps brought everybody to more or less the same situation. One of the things left to do is to follow which currency remains the main one in terms of international operations. Today is quite saturated with all kinds of events that might have an effect on the markets. Especially there is an abundance of different officials’ statements. Draghi, the ECB president, is supposed to give two speeches. Of course no one expects any revolutionary announcement. But in the short term it may have an essential impact on the current situation as no matter what the Euro is still in focus and everyone is trying to use one’s insight in order to take advantage of the trend. Bulls & bears alike…

CURRENCIES

EUR/USD

Yesterday the Euro depreciated against the US Dollar from 1.3075 to 1.2951 with further bounсe to 1.2987. The situation on the market has changed a bit. No one rushed to buy the Euro when it fell as market participants assumed further rate downgrade. The area 1.2803 - 1.2820 is at focus. If the prices drop even lower, then the aims will be 1.2760 and 1.2630.



USD/JPY

Yesterday the pair was trading in the narrow range and didn’t leave the interval 79.71 - 80.00. World analysts assume that the rise of the pair is a serious claim for further weakening of the Yen against the US Dollar. The technical picture suggests possible testing of the resistance at 84.17.