Dynamics
U.S. dollar on Monday, January 18 haggled with a slight decrease across the spectrum of the currency market FOREX. When the pair EUR /USD closed at around 1.4381, the pair GBP /USD rose to 1.6338, and the pair USD /CHF closed around 1.0251. Japanese yen showed multidirectional movements against other currencies. When the pair USD /JPY closed at around 90.77, and the pair EUR /JPY stood at 130.52. Commodity currencies were closed with an increase against the U.S. dollar. Thus, the pair AUD /USD stood at 0.9266, the pair NZD /USD closed around 0.7388 marks, and the pair USD /CAD at 1.0266.
Causes
On Monday, January 18 euro remained in the weekly low against the dollar in relation to the conservation concerns about the economic situation in EU countries such as Greece and Portugal on the eve of a meeting of finance ministers of 16 countries the euro area in Brussels. Pound had reached a four-month high against the euro and significantly strengthened its positions against the U.S. dollar after the publication of the report, recorded in January rise in house prices in the UK. Average asking price for housing in England and Wales, according to Rightmove Plc, Britain"s largest real estate portal, has increased this month by 0.4% m /m, as compared to the same period last year increased by 4.1%. Nevertheless, prices are 8.3% below the peak set in May 2008. U.S. financial markets were closed in observance of Martin Luther King Day.
What to expect?
We need to understand whether the U.S. dollar to trade in line with the previous strategy, when the signs of improvement in the economy, investors are shifting money from dollars into higher-yielding currencies, or whether it will strengthen against the backdrop of favorable economic news and expectations of more U.S. imminent rise in interest rates. It is likely that busy week of events will shed light on this situation. Today is scheduled to yield a number of important indicators. In particular, in the UK there are data on the consumer price index. In Germany, there are data on an index assessing the current economic conditions and the ZEW index of economic expectations ZEW. In the euro area, there are data on an index of business expectations ZEW. In the U.S. there are data on capital flows. In Canada awaiting a decision on interest rates Bank of Canada.
Why worry?
In the absence of consensus on the direction of further tenders for the U.S. dollar is very likely to volatile changes in his situation.
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