EU Avoid Housing Bubble, Interest Rate haunt Euro

EU negotiators can resolve diekspektasikan general rule first on mortgage loans on Monday, in order to attempt to avoid a repeat of the property bubble that sparked the euro zone debt crisis.
As reported analisadaily, Tuesday (03/23/2013), legislation that would force European lenders that have channeled funds worth 6.5 trillion euros ($ 8.5 trillion) foray into the mortgage market to check the credit worthiness of potential customers and their ability to pay, which effectively prohibit individual certification or loan bulging.This rule will also prohibit or those who execute mengillegalkan credit checks by banks and other lenders who associated wages mortgage amount they approve.
If an agreement is reached, the draft rules will need to be stamped by the full parliament and EU governments before entering berlakuknya period in mid-2015.Home loans are not responsible in the United States created a housing credit bubble that triggered the domestic global financial crisis.

About the IMF reforms, Brazil Criticizes Europe and the U.S.

Brazilian Finance Minister Guido Mantega, denounced the United States and Europe because of stalling reforms that would reduce their role in the International Monetary Fund. 
As quoted by the news agency on Saturday (20/03/2013), in a statement to the Fund on behalf of 11 member countries, Mantega said the reform of the European and U.S. dominance over the ownership of shares and voting rights at the IMF has been repeatedly delayed, preventing balancing would allow developing countries have a greater voice, AFP reported.

'Reform of the IMF may be the nadir. Targeted time has failed to be met, delays and delays have become routine, "Mantega said. 
2010 program does not run because it requires the support of the United States, where Congress continues to refuse ratification.

And the next quota review, which will be completed in January 2014, was also delayed due to 'resistance to change on the part of over-representation of European countries, "Mantega said.

In the G20, U.S. Currency Competition Policy Press

The United States will push economic strength member Group of 20 (G20) to avoid other "competing currency policy 'during the G20 meeting this week, U.S. Treasury Secretary Jacob Lew said Wednesday. 
'We will continue to press the G20 countries to avoid policy spiral' beggar thy neighbor ',' Lew said in a speech at a university in Washington, according to the prepared text.

Policy of 'beggar thy neighbor' is the economic policy of a country that is applied to fix the economic problems in a way that tends to exacerbate the economic problems of other countries. 
One of the policy of 'beggar thy neighbor' who lately tend to do some states in the face of the economic crisis is 'Competitive Devaluation' (competitive devaluation), which measures the currency devalued that aims to improve the competitiveness of its exports.

'It is essential that all G20 countries to follow up their recent commitment not to target the exchange rate for competitive purposes, "Lew added. 

Target Italian increase Minimum of 10% Debt Letter

From Italy reported that Italy raised the target issuing debt to nearly 10 percent this year, and hopes to capitalize on the demand from Asian investors use to achieve that purpose.In an interview, Head of Debt Management Italy, Maria Cannata says treasury has increased the gross funding target for 2013 of just over 450 billion euros ($ 589 billion) from the previous arrangement that is 415 billion euros.

New estimates will be adjusted to meet the country after finishing his promise to pay back 40 billion euros in arrears to private enterprises that lack of money in 2013-2014.It takes into account the budget deficit deteriorate due to the longest recession in Italy for two decades.

"We will distribute the additional publication of all letters evenly on the debt," Cannata said, adding that the action will have influence on policy treasurer who seek to extend the average maturity of debt Italy. In 2012, cash funding according to 465 billion euro target.

European Zone Economic Progress Record

Euro zone with its own policies, already made ​​progress on economic, European officials said in Washington this week to defend their handling of the debt crisis.Ignore the euro zone as the U.S. central bank stimulus measures (the Fed) and currency inflation campaign conducted by the Bank of Japan, European economic leaders say they are on the right track in supporting the 17-nation euro zone, despite the evidence must take some time to "filter".

'Euro area is increasingly making progress in implementing the strategy of a comprehensive response to the crisis,' is to be said by the officials of the European Union (EU) finance ministers for Group of 20 (G20) this week, this should suit their draft statement obtained EU at a meeting in Dublin two days ago.

European Zone target achieved moderate recovery until mid-2013 and strengthened in the second half of 2013 and in 2014. 
The statement may not be so trustworthy on economic policy meeting in Washington from Thursday. U.S. Treasury Jacob J. Lew last week suggested launching an offensive sort of European growth, and Managing Director of the International Monetary Fund (IMF) Christine Lagarde warned the global economy with a 'three-step acceleration'.

Eurozone Extend Maturity Bailout For Portugal-Ireland

The EU finance ministers are discussing ways to boost growth and create jobs.As reported by the Washington Post, Saturday (13/04/2013), this step they are doing in the middle of the economy stagnant and unemployment is at a high level.In a meeting in Dublin Castle, Ireland's Finance Minister Michael Noonan said the ministers will focus on unemployment among the young. This is because the number of unemployed youth in several European countries reached 50 percent.
Ireland which currently holds the presidency for six months in the EU, the leader of the meeting. Noonan said the finance ministers will also discuss ways to unlock access to financing for businesses in the market rather than bank.
It is important, he added, because many small and medium enterprises in the EU have access to capital.While Analisadaily, Monday (04/15/2013) The euro zone finance ministers have agreed to provide an additional seven years for Ireland and Portugal to pay back bailout loans them. It was reported by the group leader Jeroen Dijsselbloem on Friday (12/4).

The Fed Releases Minutes earlier than usual

Reported from the U.S., the Fed released its policy meeting minutes earlier than previously scheduled after the leaks reports. Several copies of this report have been sent to several rumored trade group said on Tuesday. 
The members of the U.S. Federal Reserve's policy committee still shows some differences pendangan about the duration of the asset purchase program (QE), based on the minutes of the policy meeting March 19 to 20 has just been released. 
President Barack Obama proposed spending plan of $ 3.77 trillion in Congress today that will include the reduction in social security and Medicare in an effort to revive the deficit reduction negotiations. 
Obama's budget for fiscal year 2014 will also include $ 50 billion for roads, bridges and many other public works, $ 1 billion for manufacturing innovation and trigger $ 1 billion to stimulate higher levels of education. 

Fed chairman Ben Bernanke said

Bank stress tests conducted by the central bank on a regular basis actually makes much more stable bank in which the financial system to be much more resilient.Contrast with the state of today's banks against their conditions of uncertainty in 2009 after the historic financial crisis, Bernanke said that the banking sector rebounded quite positive for the broader recovery in the credit prominence in economic growth. 
In a speech that is not directly touched on economic developments and monetary policy, Bernanke signaled the central bank causes continue to pursue easy monetary policy.

"The economy is so much stronger than four years ago, although the condition is obviously still far from being what we all want," he said.

Forex News EUR / USD this week

This week, EUR is expected to Bullish. 
The things that cause bullish EURUSD is as follows: 
First, despite the huge drop in the EU since the last ECB meeting but the ECB does not make the movement of "easing" the new date. While the Fed and now Japan, both involved in the operation of large-scale stimulus. Differences in the central bank's policy will only provide support for the EUR over the coming week. 
Second, the report disappointing U.S. jobs, which this month only 88000 new jobs generated from the target of 200,000. This reaffirms the Fed doubts about the speed and strength of the U.S. economic recovery and the policies that are now being embraced.

But the rally from EURUSD will encounter selling pressure due to the following matters:
First, according to ECB President Draghi, the recovery so far, which is expected for the second half of the year depending on the risk reduction and data entry will look closely at. At the same time he stressed that the ECB is ready to act if needed.

Euro zone Unemployment Rate Stable

Euro zone unemployment rate stable at 12.0% for the month of February. This was reported by Eurostat, the EU statistics bureau on Tuesday (2/4). The absence of an increase in employment, are likely to trigger the European Central Bank (ECB) to cut interest rates.

The figure is in line with predikis economists polled by Reuters, and is still the same as the rate in January. Data on the 17 countries that use the euro show 33,000 people lost their jobs in February, nearly 1.8 million more workers unemployed in the same time last year. The number of unemployed aged under 25 years rose to 23.9 per cent for the entire euro zone countries, for Greece and Spain increased by more than 50 percent.

Cyprus Revoke ban on casino

To Promote the Economy, Cyprus Revoke ban on casino
Reported from Cyprus, Cyprus plans to lift a ban on casinos and offers corporate profit tax exemption (tax breaks) that invest in the region to boost the economy.
Bleak reported by Reuters on Monday (01/04/2013), Cyprus has approved a 10 billion euro rescue package last week, with the consequences of fixing the banking sector and cut the cost of thousands of jobs.
Cyprus President Nicos Anastasiades the informal meeting said the 12-point growth plan will be put to Cabinet approval is expected within 15 days.
The program includes measures to attract foreign investment to the island Mediterani it (offshore financial hub), exemption of tax on business profits were invested there, and the reduction of payment terms and interest rates on loans.

ECB meeting this week

April 1, 2013 at 9:07 am
 In This Week, Will Not Possible ECB Interest Rate ChangesMeeting Euro Central Bank monetary policy this week looks to be quite interesting to observe.Economic data since the month of March has shown deterioration in the euro zone as well as the decline in private-sector funding, but the ECB is not likely to change interest rates at the ECB meeting this week.These developments indicate the ECB has not revised its economic outlook and may even retain such projections in March, the economic recovery will gain momentum at the end of 2013.The ECB has so far become a political actor in the Euro zone crisis, so that a rate cut will cause a double-edged sword effect. Therefore, pruning flowers will cause debate among the members of the ECB board.If only the ECB cut interest rates there will be the perception that the ECB is making efforts to help the euro zone economic recovery, but on one side of the action will only lead to a contradiction to the ECB's view that structural reforms in the EU is crucial to restore long-term growth.While from Italy reported Euro zone officials predict that Italy is still able to keep the agreement between the European partnet to achieve structural budget balance is supported by fiscal discipline imposed by Mario Monti. However, fiscal consolidation now more uncertain because of the certainty coalition with Berlusconi Bersani highly unlikely.

German Retail Up, Euro Strengthens Thin

Recent data shows, German retail sales unexpectedly rose in February 2013, the latest signal that the domestic economy is returning to growth.
German Federal Statistics Office said retail sales adjusted for inflation and seasonal swings rose 0.4 percent per month compared to 0.3 percent in January.
Europe's largest economy is weathering the turbulence experienced in the recent debt crisis, after an inconclusive election bailout Italy and Cyprus, which rocked financial markets.
However, unemployment is near its lowest level in two decades, and the Bundesbank predicts the economy will return to growth in the first quarter of this year, after contracting 0.6 percent in the final three months of 2012. Thus sindonews reported, as quoted by Bloomberg
The euro rebounded as much as 0.1% to $ 1.2790, but remained close to 4 month low of $ 1.2750 reached on Wednesday after an Italian bond auction shows a borrowing costs rose to a five month high as investors requested premium increases amid a prolonged political uncertainty.
The leader of the left axle Italian Pier Luigi Bersani only have little hope of forming a government after discussions with its rival party leaders ended with the rejection of a 5-Star Movement by Beppe Grillo.

Cyprus

If failed, Cyprus Facing Possible Exit from the EU

Two major banks in the financial crisis slashed Cyprus daily cash withdrawal limit from an ATM machine.

With long queues outside cash machines across the island, Laiki (Popular) Bank cut its maximum withdrawal at ATMs to 100 euros (about R1, 26 million) per day and the Bank of Cyprus reducing the limit to 120 euros (about R1, 51 million) per day.

Laiki Bank, Cyprus's second-biggest lender, prohibiting cash withdrawals up to 260 euros (about Rp 3, 28 million) per day on Thursday, after the ATM was surrounded by interesting consumers before the daily limit of 700 euros (about Rp 8, 83 million).

Cypriot President Nicos Anastasiades was in talks in Brussels bailout, the banking restructuring associated islands and handle surges decreased cash through œpemangkasan â €, â € or retribution, from several bank deposits.

Mediterranean islands are facing the possibility of exit from the euro, the European Central Bank to stop funding on Monday. Bank of Cyprus will not reopen until Tuesday after the close of 10 days.

Parliament has passed legislation to place all deposits Laiki above 100,000 euros (about R1, 26 billion) to â € œbank the burukâ € where they will be bound and never fully recovered.

But negotiations have problems, related to EU-IMF demands to apply levies on deposits at the same threshold in the Bank of Cyprus to avoid facing a similar restructuring. The island's largest lender, holds more than a third of all deposits. So Antranews reported.

Daily Forex Predictions and Analysis

EUR/USD
It is more likely to go down to around 1.27 or may be 1.2650, and after that, it might have potentially to go up to around 1.28.
(Current Price: 1.28)

GBP/USD
It is more likely to go down to around 1.4730 or lower, and after that, it might have potentially to go up to around 1.48.
(Current Price: 1.4877)