By FXEmpire.com
Analysis and Recommendations:
The EUR/USD has begun to decline trading at 1.2472 as we get closer and closer to the main event, the EuroFin Summit.
The Finance Ministers have already turned this into a three ring circus with press coverage to be proud of. These Finance Ministers have turned into Hollywood super stars, just a few years back no one would have been able to tell you the names of the EU Finance Ministers, today, and we see them on T-Shirts.
Perhaps, that is what scared off the newly appointed Greek Finance Minister, who after one week resigned.
As always the German Finance Minister is banging his shoe on the table, demanding attention and threatening the Greeks and the Spanish and the Italians, the German way or no way…
Now we hear about the “Grand Plan” didn’t we write about this before? The leaked version, The EU would serve as a united finance ministry for all 17 countries and those who breach agreed to fiscal or debt targets would cede some sovereignty and become subject to penalties, including fines. In addition it suggests a study of ‘eurobills’ and the European Redemption Fund (our preferred long-term solution) as possible interim step. There is also discussion of the ability to recapitalize banks directly from the ESM and a common overarching EU bank supervision agency. A plan along these lines would likely be positive for EUR as it removes a significant portion of the uncertainty and provides clear guidance as to the long term vision and path for the Eurozone.
There has also been the public release of Greece’s demands, including an additional 20billion euro, to which Germany replied “stop begging”.
All eyes are on the E.U. Summit set for the 28-29, and lo and behold, policy makers are leaking their agendas to the press. The FT reported today that it had seen a “draft report” of “proposals likely to be discussed at a summit this week” and claimed that the report had Herman Van Rompuy (European Council president), Jos? Manuel Barroso (European Commission president), Mario Draghi (ECB President), and Jean-Claude Juncker (chair of the Eurogroup of Eurozone finance ministers) as its joint authors, so perhaps it bears more attention than other leaks to the press.
Oh and we forgot to mention the 130billion euro fund to support and foster growth, which will be pushed by France, (going broke) Spain (with what money) and Italy (needing money). Where would this 130billion come from?
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jun 27 |
All Day |
EUR |
-0.2% |
|
|
8:30 |
GBP |
32.4K |
||
|
10:00 |
GBP |
21 |
||
|
12:30 |
USD |
0.2% |
||
|
14:00 |
USD |
-5.5% |
||
|
14:30 |
USD |
|||
|
Jun 28 |
7:55 |
EUR |
0K |
|
|
8:30 |
GBP |
-8.5B |
||
|
8:30 |
GBP |
|||
|
8:30 |
GBP |
-0.3% |
||
|
12:30 |
USD |
|||
|
12:30 |
USD |
1.9% |
||
|
23:01 |
GBP |
-29 |
||
|
Jun 29 |
29th-4th |
EUR |
0.6% |
|
|
6:45 |
EUR |
0.6% |
||
|
7:00 |
CHF |
0.81 |
||
|
8:00 |
EUR |
2.5% |
||
|
9:00 |
EUR |
2.4% |
||
|
12:30 |
USD |
0.1% |
||
|
12:30 |
USD |
0.3% |
||
|
13:45 |
USD |
52.7 |
||
|
13:55 |
USD |
74.1 |
Click here to read EUR/USD Technical Analysis.
Originally posted here
