After starting the week with an impressing weekend gap (after releasing the news of Goldman Sachs scandal) Greek Finance Minister Giorgos Papakonstantinu said Greece’s talks with the European and IMF officials on a potential aid package will last two weeks and a joint text will then agreed by May15. He also said “rumours about restructuring pf debt are nonsense”. Axel Weber, the President of the Bundesbank is not only an influential member of the ECB,but the leading candidate to replace Jean-Claude at the top position. He said to the group of German lawmakers that Greece may require financial assistance of as much as 107.92 billion dollar to escape its debt crisis and avoid default.
The European Union said Greece’s budget deficit last year was worse than it previously forecast and could top 14 percent of gross domestic product as “off-market swaps” cloud its estimates. The EU’s statistics office said today Greece’s deficit was 13.6 percent last year, higher than the governments April 7 forecast of 12.9 percent. Greek bond yields have surged to the highest in more than a decade. Also in near term the Euro has the selling pressure because the widening of the Greek 10-year bond or German Bond spread to 500 basis points.
On Tuesday the German PPI data was released at 0.7 percent while the forecasted value was 0.5 percent. German Producer Prices took a break and remained unchanged last month. After two months of surplus, Europe’s current account, consisting of good trade balance ,services and money, fell into a deficit of revised 1.7 billion last month. This deficit was actually 3.9 billion and 5.3 billion was the market consensus. From the past six months, the German ZEW economic sentiment has been on the fall, hurting the Euro all the time. Previously it was 44.5 points; the released data was 53 points which had a small impact on the Euro.
French Flash Manufacturing PMI is released with value of 56.7 points. The services sector is somewhat lagging behind, in Europe’s second largest economy. According to German Flash PMI, the Europe’s largest economy enjoys a strong manufacturing sector. The services sector was released to advance from 60.2(revised) to 61.3 points. All European Flash PMI rose from 54.1(Revise) to 55.5 Points. All the numbers are above the critical line of 50 shows positive economic expansion.
Today, the President Mr. Jean-Claude Trichet of the ECB might comment about the situation of debt-struck countries and might also say something about the stagnant economy.Tomarrow there are three main economic indicators called German Ifo Business Climate ,this is the second major survey from Germany. The data is expected to rise from 98.1points to 98.9 points. The data is the highest in almost two years. There is another data, which is going to be published on Friday called Industrial New Orders, the data is expected to fall from 1.6 percent to 0.9 percent.
As a technical point of view, the EURUSD has a support at around 1.3109 - this was the low of last year in May (that is May18, 2009)and the second support at 1.2959 .On the other hand, the EURUSD has a resistance level at 1.3423 which was the high of March 26, 2010.The second resistance for EURUSD is at 1.3493.
Have A Great And Profitable Trading Day.........
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