EUR / USD. Forecast for November 20, 2012

Written by Tim T.

In the U.S., sales in the secondary market for October showed an increase 4.97 million (annual rate) against 4.69 million in September (figure revised from 4.75 million).

In the U.S., sales in the secondary market for October showed an increase 4.97 million (annual rate) against 4.69 million in September (figure revised from 4.75 million). Also yesterday, the banks Goldman Sachs and Barclays were of the view that GDP for the third quarter will be revised from 2.0% to 2.9% (published November 29). Agency Bloomberg reported that at the end of "Operation Twist" in late December, in addition to the monthly redemption 40 billion mortgage-backed securities, the Fed may begin to buy back government bonds for 45 billion dollars a month, and also permanently on that, however, hinted vice president of the Federal Reserve Janet Yellen last week. It is also expected that the budget cuts in the U.S. will be made gradually, and therefore the expression "financial cliff" loses even a remote sign.
Today will be an extraordinary meeting of finance ministers of the euro area (Eurogroup), which is expected to be a positive decision on the funding of Greece until 2014. However, if today, investors will not hear one solution, then it has to happen at the next meeting on November 26.
Negative factor is the possible bankruptcy of Cyprus, because the government, unlike the Greek, wants to get loans on their own terms, and not under the EU. However, the money in the coffers of the Cyprus last for another three to four weeks. Also yesterday, Moody's downgraded the credit rating of France from Aaa to Aa1, but it just was followed by Standard and Poor's, which downgraded France earlier in the year. Investors reacted moderately.
At 17:30 MSK out data on the tab of new homes in the U.S. in October: the forecast 0.85 million against 0.87 million in September. In acts 21:15 Fed Chairman Ben Bernanke.

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