Daily Market Review 13 of December

OVERVIEW


The current trading year is about to finish and each currency has its own result at the end. The debt crisis in Europe is not resolved, but is just ignored. There is a moment for the EU now when they can’t fix or change anything. The can only try to forget about the crisis The nihilistic approach to solving serious woes is based on the principle to attempt not to notice the crisis, as if it can be resolved by itself. And quite soon the practice of financial injections of unlimited liquidity in combination with fiscal consolidation won’t be able to help to anybody in the EU. The aforementioned measures are able to destroy any economy. Referring to the US all the time looks just like an attempt to distract everybody’s attention. Of course things in America are not perfect. But over there unlike Europe at least there are practical measures taken for solving economic problems.


CURRRENCIES


EUR/USD


The Euro appreciated against the US Dollar from 1.2995 to 1.3097 with further dip to 1.3066. The only factor of the Euro growth was the anticipation of the FOMC meeting. This event is in the focus of the market. The boundary above is near 1.3130. Most likely the appreciation of the Euro will continue up to the FOMC meeting.