Daily Market Review 19 of December

Low prices for natural gas continue to give support to American industrial sector, what will help the Dollar to appreciate next five years as analysts predict. They mark that in time the American currency will start growing against most of the currencies. The main threat to this scenario is the monetary policy of the FRS. The current year wasn’t easy for American economy, though the Dollar managed to confirm its status of the world reserve and international currency.  Positive changes in American economy don’t manifest as soon as some people want. But the progress is obvious. The situation in Europe looks just the opposite of the one in the US, as the latter one regardless of all the woes gives reasons for a cautious optimism. The beginning of the new 2013th year Euro approaches with a developed debt crisis. Aid to Spain is evaluated as a probable end of the EU economy. There is not much hope for fiscal consolidation, as it won’t be too helpful for overcoming the debt crisis and further economic development.



The Euro appreciated against the US Dollar from 1.3155 to 1.3237. The pessimism about the Euro remains in the market. Earlier it was based on risks of default and of  the EU collapse. Now the main reason for concern is a negative economic growth.  The ECB might ease even more its monetary policy, what will be quite detrimental for the economy and for the Euro. It might become the object of mass sales’ in 2013 in accordance with analysts’ forecasts. The boundary above is the area of 1.3330 - 1.3520.


The Pound appreciated against the US Dollar from 1.6194 to1.6268. From technical point of view the Pound has to test the resistance at 1.6310 in order to start motion in case of success in the direction of ascending goals of 1.6350, 1.6490, and 1.6620. Nevertheless there‘s not much support anticipated from economic statistics. The correction to 1.605 is not excluded.