Hello koala king and folks.
Good day to you.
The main events last week:
The US Federal Reserve which is the central bank of America, together with five other central banks, namely European Central Bank ECB, Bank of Canada, Bank of England, Bank of Japan and Swiss banks coordinated to inject liquidity into the financial system. This is to reduce stress in the world financial markets.
Recession in the euro area is expected as the indicators of the manufacturing sector in the seventeen-nation euro zone dropped and reached the lowest level in three years. Only German companies could increase their production levels.
Mario draghi, president of the ECB mentioned that Europe’s banking system outlook was grim. However he promised that if politicians next week agreed on more stringent solutions, the banks would play a larger role in resolving the debt crisis of the Eurozone countries.
America’s labor market grew more than expected in November. The America employment office in its monthly report released Friday said that during the past month, nearly 140 thousand new jobs in the private sector in America has been created. Some 20 thousand people lost their jobs in the public sector. America’s unemployment rate fell in the last quarter. Finally the unemployment rate in November fell to 8.6 percent. Experts believe that the rate of decline in the unemployment rate is a good thing for the American economy and Barack Obama’s administration will be evaluated accordingly as unemployment is a major concern of his elections.
Finance ministers from the euro area countries agreed on new measures to increase the capacity of the aid fund and more details of it will be revealed during the finance ministers’ meeting in Brussels.
Germany and France have said the debt problem will require reforms in the euro area countries. It is necessary that the seventeen-nation European Union take immediate steps to restore confidence to the financial markets. Germany and France want the euro area member states to sign a treaty with binding commitments on measures to avoid a massive budget deficit.
From a technical perspective: The EUR/USD in H4 time frame is still in a downtrend channel. If the currency pair can break the upper channel line and close above 1.3520, it is the first sign of change of a temporary trend from bearish to bullish. The currency pair is likely this week to continue the downward trend and may come down to 1.3120
Have a nice time.
Masoud is a businessman and a Senior Forex Koala. Connect with him at our page on Facebook.
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