Forex news fundamental analysis:Euro is in demand in recent days

It was more like a smoldering, but the euro managed to hold out for one currency, and the other to carry out an appreciable increase in the first half of the week. It is interesting that emerged as a significant buying interest from hedge funds and sovereign wealth funds from the rich. EUR / GBP, sunken below 0.84 on Monday, has recovered to 0.85, and EUR / CHF has risen from 1.29 on Friday to 1.3150. The weakness of the franc to be expected due to increased appetite for risk. The positive dynamics of the euro is interesting, because in the last few days have been some potentially bad events to a single currency, which were ignored by the market. Such, for example, both reduce the debt dynamics in Greece and Ireland, as well as the fall of hopes for a "big deal" in the near future after a very angry debate on Friday in Brussels.

ECB opposes the division of the burden for holders of Irish bonds. Irish finance minister Lenihan is trying to promote the idea that the major lenders unsecured debts of Irish banks should be forced to accept significant reductions in face value, but the ECB has resisted this. Trichet confirmed yesterday that the division of debt relief is not part of rescue plan Ireland. Fine Gael, whose party is likely to win the elections on February 25, says he will demand from Europe, to such reduction, if it comes to power.

Business confidence continues to grow in France. Indicator of business sentiment from the Bank of France increased last month instead of 3 points to 110, which is the highest value since the end of 2007. Noticeable jump in the production notes and orders, and capacity utilization rose five percentage points since late summer. Obviously, the French industry benefits from a strong expansion in Germany. Note that the capacity utilization has risen sharply in recent months, as in Germany. The ECB must pay attention to it.

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