The main events last week without a doubt were the meeting of the ECB and the comments of its head Mario Draghi. The market participants were quite disappointed by the results of the elections. After the announcement of the European Central Bank about the economic growth in the region being under significant pressure in the foreseeable future, the interest to the Euro dropped dramatically. It was reflected by a descent under 1.2740. It is a quite serious signal for a further decline in the direction of 1.2575 and 1.2280. The Euro is also losing its positions against the Yen. The cross-rate with Yen has reached a monthly minimum. The rumor has appeared on the market, that Greece wouldn’t be able to comply with the conditions of getting an international aid. It can be elicited from the budget project which was prepared by the officials of the country for the next year. The economists worldwide assume that the rumor is quite close to reality. And Euro has acquired another negative factor of the long term. So in the near future no one expects any good news for the currency that will be able to change the situation seriously. The trend is evidently bearish.
Last week the Euro depreciated against the US Dollar from 1.2876 to 1.2689 with further bounce to 1.2709. The technical picture of the bounce is not changing and continues to be negative for the Euro. In recent two months the prices for the Euro experienced the significant decline 6 times and the rise only twice. Taking to account the Greece situation and the ECB position, approaching 1.2575 and 1.2280 looks justified. It is important to follow the interest for risky assets in order not to miss the beginning of sales’ pressure.
The Pound depreciated against the US Dollar from 1.6041 to1.5887.Analysts assume that the Pound will be able to restore its growth, if the quarterly report of the Bank of England reduces the probability of another quantitative easing. It is not excluded that the CB will downgrade its forecasts on inflation below 2%, as an economy is restoring after another recession and the CB might show some exacerbating of the inflation sentiments. In this connection hopes for growth of the English currency might disappear. The technical picture also suggests the approaching of the sasles’ pressure. The resistance above is at 1.6309.