Hello koala king and folks.
Good day to you.
Despite the 17-nation euro zone economy’s 0.2% growth in the third quarter this year compared to the previous quarter, the economic downturn in this area led to the decline of production of member countries and reached the lowest level in three years.
On the eve of crucial meetings in Brussels, following international pressure on Europe and the European Central Bank ECB to resolve the crisis, the euro zone interest rates is cut and the ECB is ready to provide more credit to the banks of the euro zone.
The summit held for the euro zone resulted in the support of a new treaty to bring about closer economic unity and resolution. Many investors were encouraged and the stock index was positive in most markets.
Portugal’s economic situation is expected to be worse. Recent results of the GDP which is published by the National Statistics showed the economy contracted 0.6 percent during the third quarter this year. Early forecasts had estimated 0.4 percent rate. Imposing more austerity policies to tame budget deficits and national debt is also taking it’s toil on the economy. It seems that this is Portugal’s biggest economic crisis in its history after the establishment of a democratic system in 1970.
From a technical perspective:
The EUR/USD is still within the downtrend channel in time frame H4 and from technical terms, it is not a sign of a change in trend. While the EUR/USD is below 1.35, the main trend is bearish. On the other hand, if you switch to time frame H1, there will also be seen a downward channel. A break in the downward channel in time frame H1 can be the first sign of a change of trend from descending to ascending.
Have a nice weekend.
Masoud is a businessman and a Senior Forex Koala. Connect with him at our page on Facebook.