22th June to 26th June 2009 Euro / USD

Posted by admin | Posted in Weekly and Daily Wake up | Posted on 22-06-2009

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The euro currency was floating at the current rate of 1.3942 which was 0.52% down from the last week’s trading in the European Union. But however it was up by 1.03% as compared to the trading of last month.
But this week has a fundamental outlook of bearish trend. The investors are still unsure about the strength of the euro currency and unable to put in their confidence in its trading. But the finance ministers of European Union are quite confident about the progress of the currency and thinking that European Central Bank (ECB) should start thinking on the price hike of the items and stop the financial stimulus in the economy since the situation is far better under control and the economy is showing the bright future prospects.
But investors are still not confident and any weak statement can fall apart the economy. Since there is no such data’s expected this week and moreover it will be on the speculators to judge the value of the currency. The ECB has kept the lending rate at 1% which is very minimal. But the leaders across Europe observe that the economy is on the onset of revival and they can see the recovery. But still the forecasts reveal that there will be a contraction of 4% in the economy through the year 2009 and 0.3% slump in the other year.
In the G8 meeting, the US and UK governments discussed that they should be focusing on economic recovery and should defer efforts to deflate budget deficits until the recovery is more tangible and global. Currently deficits are expected to be 6% of current GDP this year and the government spending will be 5% of GDP. So the investors have to still believe on the current figures and forecast and the current global economic position.