Hello koala king and folks.
Good day to you.
The World Bank warned that economic growth in developing countries due to the debt crisis in Europe has been falling downhill. The bank’s forecast of the development in the global economy reduced from 3.6 percent previously and the development of world economy in 2012 was evaluated to be 2.5 % and in 2013, 3.1%.
France on Thursday easily sold 9.5 billion euros of government bonds, securities in the market. This is the first sale of bonds by the French after its credit rating cut by ratings agency Standard & Poor’s. A stock market expert said the market seemed to ignore the degree of a credit rating cut of France.
Experts believe that due to the losses of French banks which have invested in the bonds of Greece and the insistence of France in support of the Fund’s financial stability, the euro and the economic growth will suffer severe losses. Two years after a half-billion-dollar budget request by the International Monetary Fund IMF to combat the global economic downturn, the Fund is once again calling for six hundred billion dollars to help the euro zone countries in crisis. The economic commission for Europe spokesman said that they strongly support that the IMF’s resources would increase significantly. It was because a very clear signal is sent to market that the IMF has the capacity to accept the responsibility to protect it’s members. Not only European members but the world. Twenty leaders of member countries agreed in November to the IMF’s financial resources to help solve the euro financial crisis but the details will be agreed in February this year.
America and Canada at a meeting expressed their opposition to this action. America and Canada mentioned to resolve the crisis Europe should allocate more money to it.
From a technical perspective: After several weeks, the EUR/USD finally broke out of the downtrend channel. This is only a sign of change in the short term trend. The long-term trend has not changed. Currently the currency pair is above 1.2850 which is known as a strong support. But most likely, once again the EUR/USD will touch the upper line of downtrend channel.
Have a great weekend.
Related Forex Articles from the Koala Forex Training College.