Rus News Journal

Day Forex: the euro is weak and can reach 1,377 dollars

Dollar on Friday, on May, 27th, continues to hand over positions and it well affects cost of the European currency: by 12:00 Moscow time it has reached a point 1,425 dollars/ euro. It would be desirable to underline that the current rebound is connected not with fundamentally strong positions the European and with weakness of the American economy. The data which has left the day before on growth of gross national product has not justified market expectations.

nevertheless problems in an eurozone do not recede, and, having weighed all for and against the market can return to purchases of the American currency. the eurozone suffers from two fundamental lacks: it does not have not enough fiscal union which would give the chance to redistribute incomes at the expense of the taxation, and at it very imperfect central bank which actually does not carry out the functions. Germany has very much won from the uniform market and can give to the citizens the huge social blessings, but to Greeks of such happiness has not got. It is no wonder that they are pleased not so with membership in the European Union. Differently, Europe has no adequate mechanisms for uniform currency. And I do not think that this currency is viable. The former mechanism of the European currency union carried out the functions much more effectively, it is necessary to return simply to it - the professor of university of Maryland Peter Morichi has noted in interview CNBC.

As Igor Shibanov, the chief of department of the monetary markets of the First republican bank has informed, now the euro is in consolidation. level 1,40 dollars/ euro could resist after the first attempt of testing, however now we see very weak restoration of the European currency to level 1,42 dollars As a result of euro it will be very difficult to overcome again level 1,4310 dollars In the long term one - two weeks of steam of euro/ the dollar, most likely, again will test level 1,4 and if it is broken that is quite probable the mark 1,3770 dollars " becomes the following purpose of decrease for euro; - the expert has concluded.

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