What is the prognosis for the euro can be done for the next week?
Eurozone downturn in the economy continues to gain momentum. Stagnating production, the debt problems of the peripheral economies, chronic reduction of inflation, instability of the European banking system - all of these factors continue to aggravate the situation in the region. European markets are eagerly awaiting the launch of the ECB pledged asset purchase program - similar to the American financial system to stimulate the economy. But still not resolved the question of the powers of the regulator.
Gold (XAU / USD) completes the second consecutive week the growth of quotations.Traders use the instability of the American currency in the Forex market to cover short positions in precious metals. No more fundamental reasons for the strengthening of gold last week, there was, on the contrary, there was a significant reduction in inflation expectations in the world's leading economies. This in turn is a strong negative factor for XAU / USD, but investors decided to ignore the negative background. By the end of the week "yellow metal" weight by 2.65% and closed trading at around 1222.90.
20 October 2014 forecast euro / dollar (EUR / USD)
Dollar on Friday was able to significantly strengthen its position against its main competitors - the dollar index basket (USDX) closed the trading day at around 85.20. Euro / Dollar (EUR / USD) on Friday declined to back of positive macroeconomic data from the United States.Consumer sentiment index from the University of Michigan in October has established multi-year highs, that dispels skepticism about the prospects for the American economy. Currency market participants are set to a technical correction in the euro / dollar pair, while their attempts were unsuccessful. As soon as there is a rise above 28 pieces - the market come immediately sellers euro and the euro / dollar return again in the range of 1.26 -1.28. As a result, trading on Friday on the euro / dollar ended lower quotations for 0.37%, at around 1.2759.
"Bulls" for the euro at yesterday's auction failed to add to the previous success and resume an upward trend currency.The Asia-European session, the pair turned around, and the level of 1.2844 continued downward correction, fixing minimum daily level at around 1.2707. Here, however, the situation has changed.