Weekly Market Review 16 of July
OVERVIEW


Last week passed with exacerbating of the negative sentiments about the world economic crisis and financial crisis in Europe in particular. The situation in Spain still causes a lot of worries. At the meeting of finance ministers of the EU it was agreed to offer Spain 30 billion Dollars by the end of the month. It decreased tensions at bonds’ market a bit. The issue of the protocol of FOMC meeting caused the Dollar to grow as the market found out about the split of opinions among the representatives of the committee about the necessity of further stimulating of the USA economy. A lot of world central banks joined in softening of the monetary policy. At the moment a lot of market participants are making mixed forecasts about the perspectives of the Euro. Some of them believe in the Euro growth and some in its decline. The situation is very bewildering. Anyway it doesn’t make things more clear and of course it doesn’t help the EU to resolve the crisis. On the contrary, the debt crisis in Europe entered the stage when it’s practically impossible to change or correct anything. Thus a lot of traders prefer to omit it as that seems to be the only relevant option available at the current moment. So the USA state of economy looks much more promising even with a big budget deficit.


CURRENCIES


EUR/USD

Last week the Euro depreciated against the Dollar from 1.2333 to 1.2162 with further bounce to 1.2248. The correction of the Euro prices is used for short positions increase. The resumption of the long term downward motion is the main Euro trend at the moment. Any break below 1.2150 increases chances of the Euro to reach 1.2000 in the near future.



GBP/USD

Last week the Pound decreased in the beginning from 1.5697 to 1.5392 and then the situation changed. As a result the British currency grew up to 1.5574. Though this growth according to an opinion of world analysts is temporary and the continuation of sales’ pressure is close. The resistance above is around 1.5750.