Fundamental analysis EURO for last week!

Fundamental analysis EURO for last week!
The Euro is the only one among the majors, which managed to retain the “triumphant” totals resulting of the weekly trades against the US Dollar.
The evident bust of the information flow as for the Euro zone’s debts problems, the high-leveled demand for the Spanish bonds, which was observed during the last bid auction, and finally, the assurances of the Spanish government of the guaranteed fulfillment of its obligation, which should expire in July, supported the common European currency.
Moreover, the stock markets’ optimism also leveled up the demand for the Euro. Though, the widening of the profitability spread between the 10-year Greek bonds and the German one with the same expiry period till 8% per annum in last trading day of the week i.e., on Friday, reminded the market of the default threatens’ relevance. That caused the sudden reversal to the common currency’s sales, but all the same it couldn’t derogate all Euro positions gained to the US Dollar. Furthermore, ECB went ahead refinancing the banks and announced the terms of the stress-tests – that calmed down the markets and so aroused interest in the Euro, of course. The interest rate remained unchangeable at the last meeting of the European regulator, while the J.-C.
Triche’s comments sounded optimistically. The data on the EU economy made no surprise as the GDP upturn for the 1st quarter remained within the edges of the advanced estimation, at 0.2% q/q and 0.6% y/y, though both the consumption and net export decreased. The May values of the European manufacturing indicators were reasonably good. The leading economies stated raise – Germany for +2.6% and France for +1.7%, however, the trading balances marked the opposite results as the surplus curtailed in Germany, while the deficit grew up in France. The situation is also unpromising long term, because the advancing indicator of the manufacturing orders lowered down for 0.5% in Germany, and that in its turn presumes the further cut down of the export as the principal trading item of the EU largest economy with its abroad partners is the industrial products. The ZEW report is expected this week. The business behavior index is predicted to tumble both in Germany and within the Euro zone in general by reason of elevated apprehensions concerning the Euro zone troubles and especially as for the banking sector.
The inflationary parameters are forecasted to note decline; though, following both the forecasts and the data on the European leading economies, these indicators increased in May as compared to April. Also, there’s one more negative prediction for the Euro: the foreign trading balance’s surplus shortage. As seen, the major portion of the news predicts the downgrading trend resulting of the economic processes. Certainly, it will cause the change of the attitude to the Euro, which will be far from favoring the common currency, if it occurs in fact, of course.

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