The aggressive selling in the equities markets and the worries about the financial European system amid the debt crisis has weighed strongly on the single currency last week underpinning the greenback and the risk aversion sentiment. The Single currency loses versus the greenback have reached 1.252 last Thursday but it could open up on a gap above 1.29 this week with market optimism about a close joint European reached deal for staving off the debt crisis spreading in the Euro are. Currently, the market is talking about an European plan for affording not less than 400 billion Euros for saving their financial system but the talking between the financial ministers is still on and there is no new clarification yet. But the market has seen in their meeting a considerable try for calming down the market after the turmoil of last week which brought down the European stocks down affecting negatively on the market confidence. The single currency is trying now to stay well above 1.2875 which was the low of April 2009 after breaking it last week increasing its selling off momentum after falling below 1.3 psychological level versus the greenback and failing in holding above it can lead to 1.252 again and expose 1.233 to be broken which was the formed main bottom of October 2008 amid the credit crisis and over the medium term you can find the main strong level is at 1.16 which was the main support level whereas the pair has started its rally to 1.604 before falling to 1.233 and rising back forming a lower high at 1.515 in the beginning of last December.
God Willing, it is important this week to wait for any new reached deal announcement details by the European and any new deal can clarify the future of the coming government in UK besides US trade balance of March which is awaited to be -40b$ from -39.7b$ in Feb and US retail sales of April which are expected to increase by .3% from 1.9% in March and by the end of the week, it is important to wait for the preliminary release of US Michigan consuming sentiment survey of May which is expected to come at 73.2 from 72.2 in April.
Walid Salah El Din