The European currency continued to strengthen against the U.S. dollar position

Written by admin on October 7th, 2009

The European currency continued to strengthen the position against the U.S. dollar. Max made a pair for yesterday was recorded at around 1.4762, the minimum value observed at the level of 1.4642. Pressure on the dollar was provided after the article in the British newspaper Independant that Gulf states are secret negotiations with Russia, China, Japan and France to replace the oil trade in U.S. dollar basket of currencies. Soon this message refuted Deputy Finance Minister Dmitry Pankin, and managing the Central Bank of Oman Hamoud Al-Sangur Zadzhali said he did not know about any such plans. Nevertheless, market participants continued to get rid of U.S. currency.

In addition, the negative relative to the dollar strengthened and because of expectations that U.S. Federal Reserve is unlikely in the near future will go to the tightening of monetary policy, starting raising key interest rates. This will enable market participants to use the U.S. dollar as a tool for operations carry trade. From the macroeconomic statistics, published for yesterday, it is worth noting the decision of the Reserve Bank of Australia to raise interest rates to 3.25%. Australia became the first of 20 major states of the world, which was decided to tighten monetary policy in the current situation. Today the market focus will be on the publication of data on euro area GDP in the 2 nd quarter. It is expected that the economy of the European Union declined by 0.1% in quarterly terms, and on 4,7% annual.

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