FX.co ★ Fundamental Analysis, December, 21 / 2011

The likely bid which will later in the day the European Central Bank to banks, asking about 380 billion dollars (290 billion euros) in loans to 3 years, and the reference rate of the ECB itself, upward thrust being given to the euro.

The single currency against the dollar is growing rapidly, in a much more optimistic than last week in financial markets. European shares also reflect the high spirits of investors, operating its major indexes average gain of 1.3%.

The measure would take the ECB appears to be the most sensible of the worsening financial crisis in Europe in November, and will undoubtedly bring some relief to the banks, leading providers of states now in trouble, which has brought enormous problems to meet their own commitments.

It, too, a reflection of this: in U.S. banks fell for the housing bubble that they created, providing mortgages to individuals who clearly were not able to meet its payments, and the world fell on banks, guilty certainly, but operating under rules imposed by the Fed

In Europe, the culprits are governments themselves. His populist policies, patronage, without any vision for the future and unable to move their aging structures, have led their countries to take bank loans at very reasonable rates even, aided by Germany.

So why not exhaustively noted those governments? Perhaps it is that little by little are withdrawn, and one of the latest examples is Spain. The new government took office promising a hard Rajoy adjustment to the economy, no doubt unpleasant, but essential if you intend that his country begins to show signs of recovery in the near future.

The same path should follow the rest of Europe to consolidate or minimal growth in 2012, seeking a sustainable recovery in 2013. Anyway, as we have reiterated many times in this column: "money problems are solved with money." If the ECB, IMF, or whoever, euros injected into the economies in trouble, even at the risk of renewed inflation, the output will be faster. With speeches, as was seen during 2010 and 2011, nothing comes.

Turning to the day's news agenda, have been known as the Minutes of the Bank of England. It was learned that the decision to leave unchanged the interest rate remains nearly 3 years at 0.5% was unanimous by the Monetary Policy Committee.

In addition, important data are expected in Canada, where at 8:30 Eastern will be published consumer price index. The loonie has regained strength in these days, in favor of a downward movement of the dollar in general, and the growth of oil in particular.

In the U.S., at 10:00, will be the turn of the sales of existing homes, and 10:30, the weekly oil inventories.