Hello koala king and folks.
Good day to you.
Negative outlook for Europe’s economy on one hand and government debt on the other hand, a lot of pressure to all of Europe has arrived. Moody’s changes outlook of stable economic growth in Germany to negative is due to the uncertainty arising from the debt crisis in the euro area.
Greece’s failure to adhere to its commitment to reduce their costs and the possibility of a bail out of Spain led to the euro currency’s depreciation against most currencies. Now given that America’s economy is much better than Europe’s and America’s economy has been in the early recovery phase, if the debt crisis in Europe is worse, America’s economic crisis may be triggered again. At present, China’s economy shows signs of economic downturn which is very dangerous for the global economy.
I believe the EUR/USD after a break and retracement, will start again it’s decline. I personally see first target of the exchange rate 1.1780.
Have a nice time.