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24/5/2011 - The Current Market Sentiment

Discussion in 'Current Market Sentiments' started by fx-recommends, May 23, 2011.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    The pressure on the single currency has continued into this week too after Fitch's new downgrading of Greece to B+ from BB+ by the end of last week with a negative outlook after S&P downgrading of it to B as the doubts have increased about Greece ability to meet its debts maturity with no new clear decisions from the IMF or the EU to support it as it looks far from reaching its target of lowering the budget deficit to the GDP of 2011 to 7.5% with doubts about its austerity measures and its efficiency.
    The single currency slumped below 1.4 breaking its previous supporting level at 1.4017 after opening the week below its recent supporting level at 1.412 to reach 1.3965 before rebounding above 1.4 again trading currently at 1.403 and in the case of further worries to be added to the current market sentiment, the single currency can reach 1.3751 versus the greenback again over a longer rage as there is great possibility of having debt contagion problems in The Euro zone with these current objections which we see against the austerity measures by cutting the governmental spending and hiking the taxes to help the financial positions stability of the debt ailing countries in the Euro area which hurts the current struggling economic growth of them too.
    God Willing, the market is waiting today for the release of May germane IFO to be down to 110.1 from 110.4 in April after May germane ZEW had come down to 3.1 from 7.6 while the markets were waiting for declining to 4.7

    Kind Regards
    FX Market Strategist
    Walid Salah El Din
    E-Mail: mail@fx-recommends.com

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