The European currency remains under enormous pressure on Monday, September 26.

The European currency remains under enormous pressure on Monday, September 26. By 9:00 Moscow time, its exchange rate against the dollar was 1.34, and it seems that with the opening of the session in Europe, pressure on the region’s currency will increase.

Regulators scare the eurozone

The world faces a new crisis caused by high government debt, and the euro zone is at its epicenter, ECB head Jean-Claude Trichet said over the weekend. “We are faced with a crisis generated by public debt, and its epicenter is the eurozone,” he said. The head of the ECB noted that “the governments and leaders of the European Union countries are aware of the danger of the financial crisis in the eurozone, but they need time to overcome it.”

But it is not only J.-C. Trichet who is gloomy in his forecasts. In particular, the head of the IMF, Christine Lagarde, said that the fund’s money will not be enough to solve problems that may arise due to the crisis. "Our nearly $400 billion capacity appears adequate today, but pales in comparison to the potential financial needs of fragile countries and observers during a crisis," she said, according to the BBC.

At the same time, the ECB has not made a decision on the duration of interventions in the secondary government bond market, Reuters reports the words of Jose Manuel Gonzalez-Paramo, a member of the organization’s executive committee. “The ECB is pursuing a policy of purchasing debt securities of eurozone countries without any pressure from the governments of these countries. We have yet to determine the deadlines in this area, but I emphasize that there is no government motive here, we are perhaps the most independent financial institution in the world.” , - says J. Gonzalez-Paramo in a statement. The statement by the ECB functionary can be regarded as a response to criticism of the actions of the financial regulator. Its opponents favor tighter control of inflation rather than waste of funds on the secondary market.

Greece will not pay for your crisis!

The country that is the culprit of the financial crisis in Europe, Greece, realizing that European states are close to the decision not to save it from default, quickly makes the most severe decisions in the field of budgetary savings, and they run into discontent among the population. Thus, about 2 thousand people took to the streets of the Greek capital last weekend demanding an end to austerity measures. With the slogan "We will not pay for your crisis!" Protesters surrounded the parliament building and began throwing bottles at police. In response to this, law enforcement officers had to resort to tear gas.

The demonstrations forced the country's Finance Minister Evangelos Venizelos to make excuses at a meeting of members of the International Monetary Fund in Washington, Reuters reports . The problems of Greece's shaky state apparatus are an obstacle to combating the debt crisis, but the country's authorities will do everything possible to fulfill their obligations and satisfy the demands of creditors, he said.

“Greece has made a final and irrevocable decision not to deviate from the obligations given to its partners and to work for the benefit of the eurozone,” said E. Venizelos. Addressing the heads of regulators, he thanked them for their intention to participate in providing economic assistance to Athens.

The crisis has affected raw materials

While the crisis is raging in Europe, in addition to stock prices, commodity prices have also fallen rapidly. This has led to pressure on the currencies of commodity exporting countries. Let's look at the Canadian dollar/yen pair from a technical point of view:

The Canadian dollar/yen pair is rapidly falling within the descending channel (2-4). Last week, the pressure on it was so significant that the quotes broke through support 2. Therefore, it is too late to sell the “Canadian” against the yen, and it is still scary to buy. The optimal strategy would be to wait for the pair to return within the specified channel (2-4), and sell it from its upper border (4). The final target for the decline will be 71 yen/dollar.

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Forex: regulators and Greece collapsed the euro again