The rate of dollar is under the pressure again due to growth of tension in the Near East…Short review of the market. by OpenForex.com

The rate of dollar is under the pressure again due to growth of tension in the Near East…Short review of the market.

20:40 03/23/2004

Short review of the market. International currency market situation continues to be determined by geopolitical situation in the world. The rate of the dollar has got under the pressure due to growth of tension in the Near East and due to threat of new terrorist attacks, the reason for which might be assassination of the leader of Palestinian militant grouping Hamas. Fall of American stock exchange indexes also negatively affects the dollar. On Monday, the rate of pound approached a two-week maximum against the Euro. British pound also rose against the dollar on the background of expected increase of Bank of England rates. Statement, made by Paul Taker on Friday, and release of minutes of the meeting of Bank of England, which contributed to expectations of near increase of the rates in Britain, strengthened rise of pound rate against the Euro. Fortis analysts (Belgian-Danish Bank) think that one of the reasons of the Euro rate decline are growing rumors that ECB can lower interest rates in the nearest months, especially, when some members of Bundesbank hinted that the growth rates of German economy might be disappointing this year. In Eurozone, proficit of foreign-trade balance made up 1.2 billion Euro in January against 1.5 billion Euro a year earlier. That is preliminary data that was published today by Eurostat statistical agency. According to revised data, December proficit made up 6.1 billion Euro against 6.9 billion Euro a year earlier. Seasonally adjusted volume of export rose 0,3% in January compared to the previous month. The volume of import reduced 1.1%. In the EU in total, foreign-trade balance made up 9.5 billion Euro in January against 9.3 billion Euro a year earlier. December proficit made up 1.0 billion Euro and 2.2 billion Euro a year earlier. The volume of export reduced 1.0% in January compared to the previous month, the volume of import remained without a change.

The forecast was created by trans1.