Euro continues to storm the 1.48 mark

Written by admin on October 12th, 2009

So, today in the U.S. holiday, Columbus Day. Statistics are not published, auctions of U.S. Treasury does not pass, but the auction will be. And the market in the morning the next burst of unmotivated optimism. On Friday, the Dow Jones closed down and so high, at around 9864, 0.8%, and today futures show an increase by another 0.5%. Thus, the index is about to again update the year highs. Price of a barrel of petroleum of mark WTI has risen to 72.93 dollars at the current moment. Gold is also on the maxima, 1056 dollars per troy ounce. Analytical tape write that the market supports the Friday and a report of the International Energy Agency, which predicts a greater than expected, the increase in demand for oil by the end of this year and in 2010. And the euro, which on Friday fell to 1.4672, now rose to 1.4768.

The dollar's decline in the market explain the publication of bank Barclays. Chief currency strategist at Barclays Steven Englander has estimated that the dollar's share in world foreign exchange reserves, which in 1999 was 63%, decreased to the current time to 37%, and the process accelerated in the 3 rd quarter of this year. Global central banks have become more serious attitude to diversification, whereas in the past they were limited to only talk about it. It seems that they really decided to get out of the dollar, - said Steven Englander of Barclays, a former Fed economist. A Bank of America analysts have concluded that developing countries are sold at $ 30 billion in March to buy euros, yen and other currencies. Analytical tape write that such a reaction of world leaders was very public anticipation after a sharp increase in U.S. public debt and loss of confidence in U.S. currency. However, polls Agency Bloomberg, the average consensus forecast of 40 economists shows the euro at around 1.47 by the end of the year. At the same time he expects Steven Englander euro at around 1.52 in three months. A Standard Chartered, the most successful predictor for the last 6 quarters, according to Bloomberg, expects the euro at around 1.55 by the end of the year. We tend to agree with the latter assessment.

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