Extra info for 22th June to 26th June 2009

Posted by admin | Posted in Weekly and Daily Wake up | Posted on 24-06-2009

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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 becomes more realistic and
feasible. 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. The euro currency is still dependant
on the current market trends rather than the global figures. It
reflects the global market trends of other currencies worldwide and
its major counterparts. Also euro is faring better due to rising
confidence of the investors and the financial stimulus injected by the
European Union to build in the consumer confidence.