Quotations

euro to the dollar this morning, adjusted upward after yesterday's decline to the support of 1.4100 /30. It is possible that operators FX otygryvayut in this case, the fact that the last five sessions of the European Central Bank closing for a net market appreciation of the EUR /USD on the day of the meeting of the ECB and after him the next trading day.

however, worth noting that the likelihood of mitigating the economic positions of leadership in financial EMC, including - Monetary stimulate the economy, the recent increases.

According to yesterday's information, France would seek relief from the EU fiscal discipline to the euro. Now only 13 of the 16 euro zone countries can meet the budget deficit not exceeding 3% of GDP. At the same time adhering to deadlines set by the European Commission eliminate the deficit is likely to slow the economic recovery in Europe. According to Finance Minister K. Lagarde of France, it is necessary to alleviate the requirements for fiscal discipline to the countries of the eurozone, so that they focus on preserving jobs ratherthan according to the paper standards. According to European media, the matter will be discussed at a meeting of finance ministers of the EU early next week.

Meanwhile, in the United States seems to have evolved in the opposite process. B. Federal Reserve Chairman Bernanke yesterday in his speech called on Congress and the Administration of U.S. President B. Obama did not hesitate to start developing a strategy to reduce the American budget deficit. According to Mr. Bernanke, implementing measures to counter a recession and support financial stability, strengthening the confidence of markets, we as a nation, must simultaneously plan for now is how we will restore its fiscal balance. Characteristically, a few days earlier the U.S. Reserve System, has decided to tighten the conditions for granting credit in the American sector of Abbreviations problematic Asset (TARP).

It appears that the financial authorities of the United States is currently trying to increasingly balance the interests of public finance and national lending and investment segment, which is now very interested in continuing the rally of liquidity, as a factor contributing to recapitalize the banking sector.

 

worth noting that the last time the publication of the world's macroeconomic statistics, perhaps, contributed to the growth of players' attention to the problems associated with growth rates of U.S. corporate and government bonds, which have recently developed in conjunction with increases in the prices of stock and commodities sector. Inflationary risks remain relatively high, but their implementation should be further recovery of world economy, which is now beginning to be hampered by the situation in the financial and investment sector.

According to yesterday's data, the index of business climate in the United States service, having ISM, in May, TG amounted to 44.0 pt. with an average forecast of April and the importance of this measure, equal to 45.0 and 43.7 points. A similar indicator for Germany, last month dropped to 45.2 marks Friday. The average analysts expected value of this index and its rate in April, TG accounted for 46.0 pt.

 

Dynamics of the foreign exchange market in the next few days, obviously, will very much depend on the outcome of the forthcoming meeting of the European Central Bank. It is possible that they once again will support the exchange rate of the single currency. However, against the backdrop of growing differences medium dynamics of financial markets and fundamental macro-and microeconomic statistics further appreciation of the EUR /USD looks, in general, the process is quite unstable and associated with increased likelihood of a dramatic conclusion.