Market Analytics

The EUR/USD is currently trading in the $1.3100 area, down from this year’s maximum at $1.3184.

The negotiations between Greece and its private creditors continue. The nation needs to make massive debt repayments in March, so it needs to make a deal soon. According to Olli Rehn, EU economic and monetary affairs commissioner, the deal will be likely at last reached at the weekend.

Today euro’s advance stalled on the concerns about another European economy – Portugal. The markets worry that the country may follow Greece and seek another bailout. Yields on Portuguese government bonds renewed historical maximums – the 10-year yield passed yesterday above 15% level (today the yield is just below this mark).

Analysts at ING warn that Portugal may trigger euro’s decline in February. The troika will be reviewing Portugal's adherence to its bailout package, while bond investors are already pricing in Portuguese debt’s restructuring. The specialists recommend selling euro at $1.3130/50 expecting it to break of channel support at $1.3020.

Another blow for single currency dropped after US advance GDP disappointed the market: American economy grew at a 2.8% annualized rate in the fourth quarter below the expectations of 3%-growth.

Chart. Daily EUR/USD