Hello koala king and folks.
Good day to you.
Organization for Economic Cooperation and Development in its latest report of the global economic slowdown warned that the global economic slowdown will have a strong negative impact on the economies of China and India. Accordingly, economic growth in the euro area is estimated to be 1.6 percent this year. In the next year, it is expected to experience a severe loss and growth may decline to 0.2 percent. America’s economic growth is expected to be 1.7 percent this year and may increase to 2 percent next year. According to the report, global economic growth in the current financial crisis is severely affected by the negative effects of the euro area and a drop in demand in the economy of America.
The Financial Times newspaper reported Monday that the China Investment Fund which is the largest reserve in the country, plans to invest in some developed countries of Europe.
Italy on Tuesday sold 7.5 billion euro government bonds in the market and its cost of borrowing for three-year bonds rose sharply. Italy was forced to sell these securities at the promise of eight percent interest rate which is even higher than the cost of borrowing in Ireland, Greece and Portugal.
Barack Obama, America’s president hopes the euro area resolve their debt crisis as soon as possible because the crisis in Europe may undermine America’s economy. According to analysts, the government of America and the International Monetary Fund are under pressure to provide assistance to Europe.
From a technical perspective: I still believe as per the weekly analysis, that the EUR/USD will fall. The situation in Europe and especially Italy is crucial. Any bullish action for the currency pair may be an opportunity to sell.
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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