22, February 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Greece and Bulgaria were in the spotlight on Wednesday as a frustration towards the rigid austerity measures pushed people to protest at streets in both countries.

Spanish Prime Minister Mariano Rajoy introduced new fiscal reforms on Wednesday and announced that these steps would be taken to prevent and combat corruption related to financial activities of political parties.

S & P warned that the rating of Cyprus may be downgraded to CCC and eventually defaulted on its debt if the negotiations with international creditors fail.

The pound with its increased unemployment and falling commodity currencies pushed the euro to decline. A national strike in Greece helped euro to fall as well.

Another not good news is bankruptcy of the largest real estate company Reyal Urbis in Spain.

News for today:

Euro-Zone Consumer Price Index (YoY)
European Commission Releases Economic Growth Forecasts (Table)
Euro-Zone Consumer Price Index - Core (YoY)
CAD Bank Canada Consumer Price Index Core (YoY)
USD Fed's Powell

The short term forecast. The trend is still downwarded with a steady bearish dynamics.
The pair was likely to consolidate after sharp fall. Though we do not support the idea of its growth in the nearest future. There may be some purchases while reducing to the support - 1.3185.