Daily Market Review 12 of December

OVERVIEW


Traditionally by the end of every year the American currency experiences enhanced demand. This year is quite different in this respect. The increased demand now is for the Euro. Analysts presume that the current growth of the Euro is related to the weakness of the US Dollar. Growing concerns about the American economy give negative result and that’s why the Dollar is loosing in terms of attractiveness to other currencies. Anyway the market anticipates soon the end of this period so most likely Euro is not going to stay in this favorable situation for a long time. But Switzerland really managed to shock the whole financial world. Now there is a fee for keeping the deposits in all banks of the country. On top of that there is a negative interest rate -1% that won’t let the concealed profits to grow. Apparently soon there will be no business left in Switzerland other than watch and cheese manufacturing…


CURRENCIES


EUR/USD


The Euro appreciated against the US dollar from 1.2928 to 1.3014. The increased interest for risky assets is not noticed by the end of the year. The boundary above is 1.3130. In case of its breach the rate will go up to test the upward level of 1.3345. The support below is approximately near the level of 1.2870.