abstract: eurozone finance ministers Monday to agree on a permanent relief mechanism of the concrete schema of the eurozone, despite the European stabilisation mechanism (ESM) establishment are considered of the eurozone in response to the debt problems in the region taking the right step, but foreign exchange strategists have warned that any resulting euro rally may be short-lived.
the eurozone finance ministers Monday (21st) to agree on a permanent relief mechanism of the concrete schema of the eurozone, the news promoting the euro higher, but strategists have warned, the euro rallied hard durable.
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Portugal endangered appealed Cliff euro is test EU Summit or difficult saved euro Brazil Central Bank will contain credit soared European debt worries Judah save interest rates expected fuzzy order European currency plays earthquake seven country group prepared again intervention Yen exchange rate Spain smooth issued 2.05 billion euro bonds [RMB premium][market Center]despite European stability mechanism (ESM) of established was considered eurozone in should area within debt problem aspects taken correct a step , But foreign exchange strategists have warned that any resulting euro rally may be short-lived. Only 23rd held later in the week of the EU (European Union) positive outcome of the Summit and Ireland of rescue issue is resolved, the euro to stay strong.
Citigroup (Citigroup) Valentin Marinov, foreign exchange strategist in London, said if the upcoming EU Summit failed to agree on further reducing loan costs, the eurozone's periphery financing costs have fallen on the positive impact of the euro may be fleeting.
Citigroup expects the euro/dollar in 1.425 encountered resistance in the near future, November 2010 highs $ 1.428 will be particularly difficult to break.
Ireland Government efforts to lower the lending rates on salvage efforts be replied, the EU requires Ireland to reform domestic corporation tax, and Ireland to reform Government has so far refused.
Marinov also said that if the EU Summit failed to address Ireland aid issues, euro forces gained support in the near future you may be slightly reduced.
BNP Paribas (BNP Paribas), say strategists in London, Portugal and Finland may also be made of the political situation of the euro under pressure. They wrote in a research report, Portugal rejected the opposition on the Government programme for the further introduction of austerity measures, which makes the country before the April elections were forced to accept the European financial stability Fund (EFSF) rescue more likely.
Finland before the April election of political paralysis can also hinder the EFSF's progress. Due to local voters that temporary assistance funds in the eurozone's increasingly strong opposition, Finland the Government has not agreed to extend the lending capacity of the EFSF to 440 billion euros.
the Netherlands cooperative banks (Rabobank), senior currency strategist Jane Foley said that EUR/USD is now approaching 1.425, seems completely in the Forex market is not in the eurozone debt problems. Foley also claims that is currently expanding the EFSF size is not as important as several months ago, because markets are Spain's concerns have eased, and the dollar to weaken against the euro also supported across.
while Japan disaster and Libya unrest remained, but the market expected the European Central Bank (ECB) interest rate will be announced at the next meeting on April 7, it is also a supporting factor in the euro.
