In the beginning of the week Der Spiegel informed that the ECB’s going to introduce a limitation on the profitability of peripheral obligations. This information was a reason for growth of optimism in the markets and also caused the decline in securities’ profitability in Spain and Italy. Though it was not confirmed officially a lot of analysts assume that this opportunity is seriously considered be Central Bank. Greece remained in the focus of the market for an obvious reason. There were a lot of meetings of the EU leaders discussing the situation in the country. Of course they claim that they want to preserve the same structure of Europe, but basically do not propose any new and fresh ideas capable of solving the crisis . One of the important events was the publication of the FOMC report. From that follows that QE3 might be implemented in case the pace of economic recovery won’t accelerate.
The Euro is depreciating in the beginning of the new week. It is anticipated that the downward pressure on the currency will remain and might get even stronger if the support of 1.2440 is overcome. In this case the pair might get below 1.2400.
We expect that the pressure on GBPUSD will exacerbate if the support level of 1.5765 is broken. Such an outcome might open the way to the levels of 1.5710 and 1.5670.