Daily Financial Report

This article provides a brief analysis of the main financial and economic events of the day.

Economy Last week the biggest impact on the rates was caused by the elections in France and Greece. The political instability in Greece and the probability of Greece leaving the EU monetary union were important factors as well. The EU approved of allocation of 5.2 billion Euro aid to Greece. The economy of the USA continues to display signs of improvement.

Assets' Highlights

EUR/USD Last week the Euro depreciated against the US Dollar from. From technical point of view as the gap at the beginning of the week near the level of 1.3080 - 1.3065 remained not closed the EUR has more chances for continuing of the downward trend in the direction of 1.2805, 1.2750, and even 1.2550. All that is happening against the background of expectation of rates’ lowering by ECB and anticipation of political collapse of Europe.

USD/JPY Last week the US Dollar grew against the Yen. The risk of testing of 78.00, 77.30, and 76.02 still remains one of the tools of checking the “nerve system” of the Bank of Japan. The Yen is stuck at the levels of January 1995. And it is quite interesting to compare the current state of Japanese economy with that time.

GBP/USD

Last week the Pound depreciated against the US Dollar. The British currency turned out to be too over purchased and the current situation suggests strong correctional downgrade. The closest correction goal is the area 1.5901 - 1.5970. But this is only the beginning. The full correction is expected in the area 1.5605 - 1.5650.