9th March to 13th March 2009 Euro / USD
Posted by admin | Posted in Weekly and Daily Wake up | Posted on 11-03-2009
Tags: recession
Euro trends
The world recession is deepening and is getting into a graver situation creating problems for the world economy and the major currency pairs. Euro is one such victim of such a situation.
Last week, the euro’s overall position was positive despite various ups and down during the week. The euro currency on a whole was up by 0.67% as compared to last week at a current rate of 1.2687 USD. But this week the condition seems to be bearish due to major happening in the Euro zone and more release of important data figures in US and Europe.
The major reason for such a situation is the rate cuts by European Central Bank (ECB) from 2% to 1.5%. This made the Euro currency slid at a level of 1.2615 USD level when the currency almost dip by 40 pips against dollar. Also the Japanese currency Yen dipped by 150 pips at a close mark of 123.57.
The future market cannot be predicted since ECB has announced to make further rate cuts as economic slum deepens. The situation is expected to be the same till 2nd half of 2009. And the situation will only take a bullish turn if the Euro zone follows the policy of US Federal Reserve in tackling the recession. Also the recession is also not expected to recover soon as deflation could reduce the possibility of potential economic slowdown.
Further the Euro trends are likely to be affected from the various data releases from Britain and US. Also the stocks were undervalued and the decrease in US crude oil inventories may leave an impact on the euro currency.
At the moment Euro is at fundamental and technical cross roads. In price action, the currency has taken to congestion that is on verge of confirming a major bearish reversal against US dollar, British pound or Japanese yen. Also the financial cracks which are developing in the member states of euro economy are affecting the stability of euro currency along with global recession and credit crises.
Also various eastern European countries are denied to 180 million aid package which has caused resentment among the people of these countries.
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