Fundamental analysis
Gerardo Porras
European shares fall back into the session on Wednesday, in a move that was expected, given the lack of definition of the political crisis in Greece and Italy.On Greece, the problem brings a drag of months, and while the former leader Papandreou resigned and assumes no new government, creating a sense of anarchy at a time when continuity is defined or not the country in the Euro.
In the case of Italy, their leader Bernusconi announced his resignation on Tuesday generated a significant increase in the stock of the old continent, but ultimately such waiver was not submitted. A further surprise in the middle of the number of unusual events very special this year for the markets.
This lack of definition is hitting squarely in the minds of investors, who once sought refuge in the dollar. Therefore, all major currencies are giving strength to the dollar, while the Dow Jones index futures trading at sharply lower at the opening hours of the NYSE.
The Euro is naturally the currency most affected in these hours, but also the Swiss franc and Australian dollar signs of weakness. The British pound, meanwhile, still has the dimension of 1.60, which, however, momentarily lost in the midday in Europe. The yen, which had strengthened over the past two days, fell slightly against the dollar, but without losing its medium-term uptrend.
If the economic, financial, and social policy in the euro continued to decline for the next few weeks we will see a devaluation to u $ s 1.3000 .- could be the first announcement of a major collapse that would threaten the political unity of Europe and the survival of their beloved son, the Euro.
It also falls on oil, which traded at $ 95.55 a barrel at the moment, losing two dollars from the high of the day.
For the U.S. session, hopefully, as a fact of importance, the weekly oil inventories in the U.S., at 10:30 Eastern.
http://instaforex.com/forex_analysis/43449/?x=OUE
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