Good day forex traders and readers.

It’s once again the weekend and I hope you had a great week of forex trading.

In the previous EUR/USD forecast we explored the critical region of sub 1.3 and the impact of the European Central Bank cut of the Euro Zone interest rate.

This week brought about more bearish pressure as the EUR/USD crept into the 1.28 sector. Having said so, the currency pair attempted to recovery and is now back above 1.29. The 1.3 will likely remain a resistance which the EUR/USD must overcome before any further correction can be expected. Sentiments will need to recover too before that happens and it will likely be an uphill battle as the Euro Zone’s economy struggles with its woes. In the meanwhile apprehension arising from developments such as below will likely dampen sentiments.

Read more from Bloomberg below :

European Investment Bank chief Werner Hoyer suggested European Union policymakers are placing exaggerated hopes in the lender’s ability to boost growth in Europe and called for budgetary commitments if the EIB is to assume bigger risks in financing cash-strapped companies.

EU finance ministers and central bank governors are gathering in Milan today to discuss ways to stimulate private investments in an effort to revive the economy and create jobs. Germany ’s Wolfgang Schaeuble and his French counterpart Michel Sapin in a joint proposal for the meeting said the EIB should “increase, on its own balance sheet, its risk-taking willingness.”

“Expectations are somewhat exuberant but it’s clear that the EU bank has to play a role in such a situation,” Hoyer told reporters today before the meeting. “However, this of course must be covered by appropriate budgetary arrangements because it’s about taking higher risks and maintaining the solidity of the bank on this occasion.”

The Luxembourg-based EIB, which is owned by the EU member states, is the EU’s favored conduit for investment loans, as outlined in a 300 billion-euro ($389 billion) proposal to “re-industrialize” Europe, presented by Jean-Claude Juncker , the president-elect of the European Commission, in July. The plan follows a 120 billion-euro growth boost pledged in 2012 that was based on a 10 billion-euro increase in the EIB’s capital and assumptions about how much investment that would unleash. Market Remedy

Schaeuble and Sapin in their proposal urge Hoyer to come up with new ideas to boost the EIB’s “value-added,” while at the same time preserving the bank’s financial strength. The EIB and national development banks such as Germany’s KfW Group should “act as a bridge vis-a-vis market gaps.”

“The objective is to remedy market failures or deficiencies and to ensure a real subsidiarity of its actions vis-a-vis the private sector, increased […]

Click here to view original article at www.bloomberg.com

Invest In Yourself And Get Premium Analysis

Less than 20 cents a day
Major Currency Pairs Analysis
Forex Sentiment Analysis
Understand The Market
10 days money back guarantee

View Subscription Options

Would you like to connect?

Get notifications on new forecasts and articles.

EUR/USD Update – Hoyer Warns of Exuberant Expectations of EIB’s Role in Recovery

Trending Forex Articles