American currency is under the pressure again…Brief review of the market. by OpenForex.com

American currency is under the pressure again…Brief review of the market.

11:17 05/20/2004

American currency is under the pressure again…Brief review of the market. Brief review of the market. At today’ s trades, the dollar got significantly lower against the major currencies. USD/JPY pair plays the leading role on the currency market now. It is significant selling of the dollars against the yen that contributed to the weakening of American currency against the European ones. The dollar was also under the pressure of concerns connected with the level of inflation in the U.S. Those concerns were aroused by the statement of Richmond FRS chief Broaddus, who said that the recent strengthening of price pressure had taken FRS unawares. Despite Broaddus’s comments, it is expected that Ben Bernanke will bring forth the fact that FRS will gradually tighten its monetary policy. British currency also rose today due to interest rate hike expectations that is to take place in Britain. According to the minutes of the meeting of the Bank of England, that took place on May 5-6, all the 9 members of the Board voted unanimously for raising the rate on 25 points to 4.15%. The question of raising the rate 50 points higher was also discussed, however, all the members of the Board voted for raising the rate only on 25 points. The Bank of England noted that the rates might be raised faster than supposed by the market. The Board members are sure that 50 points rate hike will contribute to lowering the volume of consumer debt. The Eurozone International trade proficit rose to 10,2 billion Euro in March 2004 from 6,5 billion Euro in February. In March 2003, International trade proficit equaled 3,4 billion Euro. Analysts had looked for 7,0 billion Euro positive International trade balance of Eurozone for March. Exports from Eurozone rose 12 percent to 100,4 billion Euro in March 2004 compared to March 2003; imports rose 5,0 percent to 90,2 billion Euro. Statistical data shows that European exporters actively used growth facilities, provided by world economy recovery and the Euro rate decline against the dollar. International Monetary Fund (IMF) forecasts that the volume of world trade would rise 6,8% in 2004 after 4,5% gain in 2003. Eurostat submitted International trade balance data on 25 countries of the European Union for February. The given data says that the EU International trade balance dropped to 4,3 billion Euro in February 2004 from 6,7 billion Euro in February 2003 and 12,1 billion Euro in January 2004. In the first quarter of 2004, the positive surplus of the International trade of Eurozone rose two times more to 18,3 billion Euro from 7,0 billion Euro in the similar period of 2003.

The forecast was created by trans1.