Trade-24 Daily Review 13/11/12

The EUR/USD stayed near 2 months low after Greece’s ruling coalition collected enough votes in parliament to approve 2013 budget. ”The success of the Greek vote is seen as a positive sign that lifts some of the uncertainty concerning the EUR, but any upside in the EUR against other currencies is seen limited. As a matter of fact if the EUR/USD jumps, it will be a selling opportunity. The reason for that are signs that the debt crisis is spreading to the rich countries of Europe.

Still, the EUR/USD has shown unbelievable resilience over the time of the crisis. In the past, analysts said the EUR/USD was doomed to collapse to parity, however, this did not happen. Hence, it is possible that we will see the pair above 1.2800 when the Greek problem is resolved. At least resolved for the time being”, said a currency analyst in a European brokerage. “The Greek debt situation is unsustainable, and it is a matter of time till Greece defaults on its debt. I think the markets have not priced this. Maybe this time Greece will be saved, but this drama will recur, weighing on the EUR”, he added.

Greece captured the spotlights on Monday. Today pay attention to the ZEW economic sentiment index in Germany and the CPI in Britain. The GBP/USD suffered on Friday as speculations that the Bank of England will eventually ease monetary policy weighed on the pair. For the time being, 1.5826 might be the target for the pair.

Tomorrow may be the most interesting day this week. First, we have the British inflation report, then the retail sales in the US, and in the evening the Fed releases the minutes of its last interest rate decision. By the way, Bernanke speaks on Thursday. He will speak about housing mortgages. Also on Thursday Germany and the EU publish their GDP.

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