Hello koala king and folks.
Good day to you.
Europe’s central bank for the second time in the past two months avail of low-interest loans to European banks. Mario Draghi, president of the Central Bank of Europe ECB believes that the bank can not directly solve the debt crisis in the euro area but through economic incentives can assist to boost the economy of this region. This means that banks can lend to customers or buy government bonds.
Director of the Bank of England said that the idea of cheap loans to banks whereby in the long term banks will lend money to small businesses and thus leading to economic growth is not viable. What the banks especially in the euro zone countries, would do is that this money is reserved for compensation and alternative funding sources that are outside of the banks would still be sought after.
Winter led to an increasing number of unemployed in Germany and the country’s unemployment rate reached 7.4 percent in February. Meanwhile economic growth in Germany in the final quarter of last year fell 0.2 percent. Eurozone industrial production in manufacturing declined in February for the seventh straight month. Production index decreased in 17 regional member countries and unemployment is rising. Global slowdown resulting in a reduction of purchase orders and the financial crisis in this region is causing the manufacturing slump.
More than 112 000 people were added to the number of applicants for unemployment benefit in Spain in January and the unemployment rate reached 22.9% in this country. It has the highest unemployment rate among the seventeen-nation euro zone. Spanish Ministry of Labor announced that since February last year more than four hundred thousand jobs have been lost.
Twenty-five states and seven countries of the Europe Union signed a new financial agreement that a country’s annual deficit should not exceed half a percent of GDP of that country. There are other measures to this plan and the signatories will be fined for non compliance. Great Britain and the Czech Republic are two countries that have refused to sign the treaty.
From a technical perspective: As you can see in the above picture,the EUR/USD after forming a double top will start to fall. The currency pair after reaching the lower channel line and also after reaching the 1.3150 resistance, will probably rebound. However if the resistance 1.3150 is broken and the daily candle closes below this range, the downward trend may continue until 1:30.
Have a great weekend.
Masoud.
Related Forex Articles from the Koala Forex Training College.

Trending Forex Articles
Masoud EUR/USD Forex Forecast Weekly Review 5 Mar 12
Masoud EUR/USD Forex Forecast Weekly Review 5 Mar 12
Masoud EUR/USD Forex Forecast Weekly Review 5 Mar 12
Masoud EUR/USD Forex Forecast Weekly Review 5 Mar 12
Masoud EUR/USD Forex Forecast Weekly Review 5 Mar 12
Masoud EUR/USD Forex Forecast Weekly Review 5 Mar 12