Helena Izotova
Forex news, EURUSD. Eurozone crediting has been declining for several months in a row. Last data about the volume of money stock, published yesterday by European Central Bank, has been another proof of declining rates of household crediting. This trend is likely to get stronger during the nearest months. The total size of household crediting in Eurozone, according to the results of March 2012, has shown decline to +0.6% y/y versus February result of +1.2% y/y.
Decline in the quantity of purchased residential real estate has become the major reason of the drop. And this is not surprising, taking into consideration such number of problematic credits as, for example, in Spain . Current data shows that mortgage crediting in Spain has dropped only by 1.8% in comparison to the peak in December 2010 года. Therefore, in combination with information about real estate prices, the banks of the country are to pass a long way to stabilization of their balances. In such circumstances the idea of implementing “bad bank” in Spain does not seem surprising, although Spanish officials are unlikely to fulfill the plan without external support.
The issued data is equal to the predictions of IMF concerning the fact that eurozone is to pass a long way to reduce bank balances in the nearest years.
As explained by Commodity Trading Department of , euro future is traded at lowered volumes between the levels of support and resistance 1.3250-1.3300. In this reference, two stop-volumes in a row signal about harder upward trend, and resistance may be tested if the power of demand gets higher; otherwise, EURUSD will continue the flat-type trend within the stated margins.
Helena Izotova
