The key question in Europe at the moment is saving countries and recapitalization of banks. In the US attention of all is focused at the negotiations about the fiscal policy. The interest for risky assets has declined. Analysts assume that next year the Dollar will appreciate against the Euro and the Yen. Also they forecast that by 2014 the pace of the GDP growth will constitute 2% against the previous average figure of 1.26%. Amid the reasons for such scenario were the successful solution of a fiscal issue, the restoration of American real estate market and also the growth of private expenditure and customers’ trust. Analysts worldwide also expect the US Dollar to become the absolute favorite among the main currencies. The American economy is forecasted to grow faster than the economies of other G-10 countries. Overall, prediction for the foreseeable future in a certain way shape the sentiments of the market about the present situation, as the forecasts are deeply rooted in the current state of economy. To round it off the market looses trust to the European economy and turns with hope to the USA, which struggle to overcome the crisis has been much more productive and successful so far.
The Euro depreciated against the US Dollar from 1.3008 to 1.2915. The Greece factor is very important especially against the background of absence of good news from Europe. Thus there are no solid reasons to believe that the Euro will be able to grow in the forseeable future. The resistance above is 1.3050.
The Pound depreciated against the US Dollar from 1.6055 to 1.6008. The market hopes for the preservation of high demand for the British currency while there are Euro sales. The boundary above is the level of 1.6130. But reaching of this level is possible only by breaking of the resistance at 1.6060. Anyway technical picture looks quite bad for the Pound. The further development of the downtrend scenario suggests the loss of the key support at 1.5860 and subsequent slip to 1.5820.