The euro gradually declines
21.09.2015
On Monday, the main currency pair is trading with a decline, as investors are ambiguously analyzing the Greek news.
Euro declines on Monday afternoon in tandem with the US dollar. Current trades are held at the level of 1.1284. The Greek theme came to the fore, replacing the driver of the US Federal Reserve.
On Sunday, Greek parliamentary elections were held, and they were ahead of schedule and forced. As a result, the majority of seats in the Parliament were again taken by SYRIZA - according to preliminary estimates, it was given 144 seats. It's almost the majority. This news means that all policies - from economic to political - will remain in force and will not be altered. The Greek parliament has 300 seats in total.
Europe has assessed the results of these elections. France, for example, believes the victory of SYRIZA to be a considerable success. It is interesting to observe the assessment of political events, because Mr. Tsipras previously resigned from his post as a result of the enormous pressure and the very broad ambitions of creditors in the country. And now it seems, he is coming back.
Today a number of European statistics were released. Germany issued a report on the August producer price index. The indicator dropped last month by 0.5% m/m against expectations of a decrease of 0.3% m/m. Yearly the dip in the index is 1.7. This is quite a serious figure.
Moody's has downgraded the sovereign rating of France and Italy released a very optimistic forecast for GDP for 2015 and 2016. Meanwhile, Europe continues to monitor the influx of refugees. This is a very serious problem, although the Old World, it seems, does not yet understand the scale of it. Closing the borders to new arrivals, Europe is contradicting itself. It is unlikely that this story will end happily - for the political reputation of European countries or their economic component. They should not toy with people who are fleeing from war, especially when the old world needs working hands. It seems that it's time to review the migratory policy, rates and employment benefits for the new European citizens. The influx of refugees can be beneficial if they stop contemplating the story from atop a high wall.
RoboForex Analytical Department
Euro declines on Monday afternoon in tandem with the US dollar. Current trades are held at the level of 1.1284. The Greek theme came to the fore, replacing the driver of the US Federal Reserve.
On Sunday, Greek parliamentary elections were held, and they were ahead of schedule and forced. As a result, the majority of seats in the Parliament were again taken by SYRIZA - according to preliminary estimates, it was given 144 seats. It's almost the majority. This news means that all policies - from economic to political - will remain in force and will not be altered. The Greek parliament has 300 seats in total.
Europe has assessed the results of these elections. France, for example, believes the victory of SYRIZA to be a considerable success. It is interesting to observe the assessment of political events, because Mr. Tsipras previously resigned from his post as a result of the enormous pressure and the very broad ambitions of creditors in the country. And now it seems, he is coming back.
Today a number of European statistics were released. Germany issued a report on the August producer price index. The indicator dropped last month by 0.5% m/m against expectations of a decrease of 0.3% m/m. Yearly the dip in the index is 1.7. This is quite a serious figure.
Moody's has downgraded the sovereign rating of France and Italy released a very optimistic forecast for GDP for 2015 and 2016. Meanwhile, Europe continues to monitor the influx of refugees. This is a very serious problem, although the Old World, it seems, does not yet understand the scale of it. Closing the borders to new arrivals, Europe is contradicting itself. It is unlikely that this story will end happily - for the political reputation of European countries or their economic component. They should not toy with people who are fleeing from war, especially when the old world needs working hands. It seems that it's time to review the migratory policy, rates and employment benefits for the new European citizens. The influx of refugees can be beneficial if they stop contemplating the story from atop a high wall.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.