On Friday IFO Business Climate Index in Germany in March was 106.7 vs. expectations for 107.4. Data on the 3-year LTRO was published and it was 1.936 billion euros against 6.815 billion in the previous week. The drop in number may be regarded as the banks are preparing for possible low liquidity amid the situation on the Cyprus. In fact, the euro and the other US dollar counterparts were bought against the news, the stock market grew as well. We consider that despite mass media tries to aggravate the situation, these buys have considerable prerequisites as money in the Cyprus’ banks play insignificant role in the EU’s economy. At the end of 2012, the Eurogroup Chairman, Jean Claude Juncker, said the Cyprus’ problem was much more serious than that of Greece. However, neither EU nor ECB helped to prevent the collapse which was approaching. We can assume that the scenarios to prevent the local defaults are calculated and the major investors know that the particular features change due to local conditions.
Currently the decision to reorganize Laiki bank was taken. The depositors with over 100,000 euros are likely to lose 30% of their holdings. Then Laiki will be split and wound down. The uninsured deposits lose 40%. The Eurogroup approved the plan.
At 21:15 GMT+4 the US Federal Reserve chief, Ben Bernanke speaks.
From the technical point of view, the continuation of growth is expected after the resistance on the daily chart 1.3062 is tested; it may be considered as the first growth target. Then the price is expected to be on the level of Fibonacci 236% on the H4 1.3117, then 1.3170, the resistance of trendline on the H4.
The material has been provided by InstaForex Company – www.instaforex.com
On Friday IFO Business Climate Index in Germany in March was 106.7 vs. expectations for 107.4. Data on the 3-year LTRO was published and it was 1.936 billion euros against 6.815 billion in the previous week. The drop in number may be regarded as the banks are preparing for possible low liquidity amid the situation on the Cyprus. In fact, the euro and the other US dollar counterparts were bought against the news, the stock market grew as well. We consider that despite mass media tries to aggravate the situation, these buys have considerable prerequisites as money in the Cyprus’ banks play insignificant role in the EU’s economy. At the end of 2012, the Eurogroup Chairman, Jean Claude Juncker, said the Cyprus’ problem was much more serious than that of Greece. However, neither EU nor ECB helped to prevent the collapse which was approaching. We can assume that the scenarios to prevent the local defaults are calculated and the major investors know that the particular features change due to local conditions.
Currently the decision to reorganize Laiki bank was taken. The depositors with over 100,000 euros are likely to lose 30% of their holdings. Then Laiki will be split and wound down. The uninsured deposits lose 40%. The Eurogroup approved the plan.
At 21:15 GMT+4 the US Federal Reserve chief, Ben Bernanke speaks.
From the technical point of view, the continuation of growth is expected after the resistance on the daily chart 1.3062 is tested; it may be considered as the first growth target. Then the price is expected to be on the level of Fibonacci 236% on the H4 1.3117, then 1.3170, the resistance of trendline on the H4.
The material has been provided by InstaForex Company – www.instaforex.com
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