Market intelligence – 12.07.11
Macroeconomics
The past two weeks were pretty active as far as the activity in economical policy relevant to the financial markets is concerned.
At the beginning it was the approval of the Greek parliament for the austerity plans of the government. The positive decision paved the way for the next round of money transfers to prevent from the bankruptcy of the EURO member state. For the moment the financial markets took this as a relief and the EURO gained strength. As far the EU debt crisis was concerned however, it took until the end of last week to see the rating of Portugal falling to junk status. More rumours about the situation of Spain and Portugal had quickly turned the focus again on the EU debt crisis, which had sent the EURO back to the bottom end of the trading range between 1.41 and 1.45 versus the USD.
