EUR/USD is going down today. Investors are concerned that stress-tests of the European banks, which should be published on 23rd of July, will appear to be negative. It is considered that this data will show the real picture of the current state of Eurozone financial sector.
The only information already released is about one of the German banks, which doesn’t have enough capital to meet the required rates. In the beginning of the week investors were sure that Hypo Real Estate is going to be the only one that will not meet the requirements, but the closer it gets to the publication date, the more market players are panicking.
Today the head of the FRS is going to perform a speech in the US Senate with the semi-annual report. Some pressure also comes from the data about the number of applications for unemployment benefits in the USA that should be published tomorrow. It can appear poor again.
Meanwhile, investors’ were provided with the economists’ positive forecast. Experts from RCM Asia Pacific Ltd., which is managing more than $12 million dollars, think that in the third quarter of the current year investors will start to risk again, and the fear of the recession will be gone. Experts make their conclusions based on the observing of MSCI World index, which grew up by 5,1% in last 3 weeks, after dropping over 11% in first 6 months of the year. Economists admit the fact that some threat comes from the side of China, but think that traders have enough sources to be optimistic.
It should be noted that current roll-back is positive for Euro. Currency will avoid the “overheating”, while going down from the local maximum values, and will be able to continue the mid-term trend, after investors will get their long-expected information about the stress-tests results.
The only information already released is about one of the German banks, which doesn’t have enough capital to meet the required rates. In the beginning of the week investors were sure that Hypo Real Estate is going to be the only one that will not meet the requirements, but the closer it gets to the publication date, the more market players are panicking.
Today the head of the FRS is going to perform a speech in the US Senate with the semi-annual report. Some pressure also comes from the data about the number of applications for unemployment benefits in the USA that should be published tomorrow. It can appear poor again.
Meanwhile, investors’ were provided with the economists’ positive forecast. Experts from RCM Asia Pacific Ltd., which is managing more than $12 million dollars, think that in the third quarter of the current year investors will start to risk again, and the fear of the recession will be gone. Experts make their conclusions based on the observing of MSCI World index, which grew up by 5,1% in last 3 weeks, after dropping over 11% in first 6 months of the year. Economists admit the fact that some threat comes from the side of China, but think that traders have enough sources to be optimistic.
It should be noted that current roll-back is positive for Euro. Currency will avoid the “overheating”, while going down from the local maximum values, and will be able to continue the mid-term trend, after investors will get their long-expected information about the stress-tests results.
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