2013-04-25 05:00 GMT
Enrico Letta named Italian PM
Italian President Giorgio Napolitano, who was reelected to the post last weekend, has given the mandate to form a government to center-left deputy leader Enrico Letta on Wednesday.After accepting the nomination the new Italian Prime Minister said that he would form "a government of service to the country." He stressed that politics in Italy should regain credibility in order to make head against the crisis. He said that the situation in Italy was very difficult at the moment and that the most urgent issues which should be addressed were unemployment, poverty and problems faced by small businesses. He suggested that the Eurozone should not press so much for austerity and rather focus on boosting growth in the area. 46 year old Enrico Letta is the second youngest Prime Minister in the history of Italian politics. He is the nephew of Gianni Letta, Silvio Berlusconi's close ally and despite his young age he has extensive government experience (he held various ministerial positions in the Italian government and served as a Member of the European Parliament for the North-East region) The cabinet formed by Letta will receive support mainly from Berlusconi's People of Freedom (PDL) party, Letta's Democratic Party (PD) and Mario Monti's centrist Civic Choice.
Meanwhile for the past 2 weeks, the British pound consolidated quietly between 1.52 and 1.54 waiting for a reason to breakout but sterling traders need not wait any longer as tomorrow's first quarter GDP report poses a major risk to the recent consolidation. It is no secret that the U.K. economy is weak but the question before us is whether the U.K. fell back into recession in the first quarter and if so, will the Bank of England finally ease. Based on economist expectations GDP grew 0.1% in Q1 and we agree that the economy expanded between January and March because retail sales and trade activity improved. However not everyone is sure that a triple dip recession has been averted and the skepticism of Bank of England policymaker Weale who must have a good read on the economy has us worried. Weale said earlier this week that there is a risk GDP declined in Q1 and if he is right that would mean the U.K. economy fell into a triple dip recession.-FXstreet.com
FOREX ECONOMIC CALENDAR
2013-04-25 08:30 GMT
UK. Gross Domestic Product
2013-04-25 12:30 GMT
USA. US Initial Jobless Claims
2013-04-25 14:00 GMT
USA. Treasury Sec Lew Speech
2013-04-25 23:30 GMT
Japan. National Consumer Price Index
FOREX ECONOMIC CALENDAR
2013-04-25 05:04 GMT
Window still open for the Yen to recover – JPMorgan
2013-04-25 04:31 GMT
EUR/USD – Will next week’s ECB Rate decision end the range bound behavior?
2013-04-25 03:28 GMT
GBP/USD buoyed by Verizon/Vodafone buzz
2013-04-25 02:25 GMT
AUD/USD drifting higher towards resistance at 1.0345
MARKET ANALYSIS – Intraday Analysis
Upwards scenario: Retracement action is reasonable scenario for EURUSD today. Our focus is shifted to the key resistive barrier at 1.3061 (R1). If the price manages to overcome it we would suggest next intraday targets at 1.3079 (R2) and 1.3096 (R3). Downwards scenario: Possible downside expansion would attack our support levels at 1.3017 (S2) and 1.3000 (S3). However prior reaching our targets, market should manage to overcome key resistive structure at 1.3034 (S1).
Resistance Levels: 1.3061, 1.3079, 1.3096
Support Levels: 1.3034, 1.3017, 1.3000
Upwards scenario: The recent price acceleration on the upside suggests a possible move higher. Next on tap is resistive barrier at 1.5334 (R1) on the way towards to higher targets at 1.5347 (R2) and 1.5361 (R3). Downwards scenario: On the other hand, if the price failed to gain momentum on the upside we expect retest of our next support level at 1.5298 (S1). Clearance here is required to keep the downside extension intact and enable our lower targets at 1.5285 (S2) and 1.5270 (S3).
Resistance Levels: 1.5334, 1.5347, 1.5361
Support Levels: 1.5298, 1.5285, 1.5270
Upwards scenario: Measures of resistance might be activating when the pair approaches the 99.77 (R1) mark. Break here would suggest next interim target at 100.13 (R2) and If the price keeps its momentum we expect an exposure of 100.48 (R3). Downwards scenario: Signal of instrument depreciation would be created below the next support level at 99.15 (S1). In such case we would suggest next interim target at 98.77 (S2) and then our final aim at 98.40 (S3).
Resistance Levels: 99.77, 100.13, 100.48
Support Levels: 99.15, 98.77, 98.40
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