12, February 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Last Friday macroeconomic data was strong; New York was in a snowstorm, there was no strong trading activity.

China’s Trade balance in January was $29.2 bln. against the forecast for $24.3 bln.

Germany’s Trade balance in December was up €2.2 bln. US Trade deficit narrowed $10.1 bln. US Corporate sector had satisfied results.

US stock index S&P 500 has rallied 0.57%, the euro was in inverse correlation to the stock market and it dropped 33 points.

EU President Herman Van Rompuy on Friday welcomed the agreement on the long-term budget of the region, saying that it will support the economic growth.

Countries PIIGS, one after another, have already taken steps to reduce the deficit.

The ECB has no plans yet to soften its monetary policy. Bond purchases are sterilized with weekly deposits.

It is interesting that many well-known analysts on Wall Street say that the current decline in the euro/dollar may continue in the nearest future. However, analysts predict that the change should not be a big deal and will not be negative. Most likely, they will have the correction values.

European leaders have adopted a long-term agreement to reduce the EU budget, in real terms, for the first time, as the European Union was created.

After all-night talks in Brussels, a draft proposal to limit the EU budget of € 960 billion over the next seven years was presented.

It means to cut more than € 30 billion from the previous budget - and was hailed as a triumph for those who seek to limit costs in Europe.

Agricultural subsidies will continue to consume a significant piece of EU spendings in the budget, about 39% of the total.

The Common Agricultural Policy will actually consume the € 1 billion more money than in the previous offer, in November last year.

The European Commission has also published a list of 97 worthy projects funded by the EU.