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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

EURUSD, GBPUSD. Asian markets caused the dollar falling already the second day in a row

17:19 04/12/2007

Today the dollar again has fallen at the Asian session.
After publication of minutes of FOMC last meeting more aggressive rhetoric of comments of last meeting of FOMC members than it was expected there was observed a small recoil of trend in favor of dollar. However already yesterday at closing of session the euro restored its positions and today on morning at Asian markets the dollar bulls drew back their positions.

FRS officials were unanimous in opinion that the main object of their concern for this moment is not the problems of economical growth but inflationary background.
FOMC minutes showed that Ben Bernanke and his colleagues discussed even the probability of increase in interest rates at FOMC nearest meeting, which should take place on May, 9 due o necessity of measures in struggle with growing inflation.
In opinion of majority of analysts Committee members face no easy choice between prospects of weaker rise and inflationary risks, in this situation FED comes across strong pressure of Congress which demands from FRS more decisive actions concerning stimulation of industrial growth. Publication of minutes caused a negative reaction of investors on stock markets. Industrial index Dow-Jones closed yesterday with downturn by 89.23 points to a level 12 484.23. it was the first correction for a week of uptrend on this index.
The dollar is under pressure already the second day in a row in a background of aggravation of intensity between China and the USA about increase of Chinese piracy goods on world markets. On Tuesday the USA made a complaint to WTO on this issue. In its turn the fact that China will reduce dollar share in its currency and gold reserves and will start the damp of the US notes give a concern. Let's remind that China is the largest holder of the American notes after Japan. This can cause the increase of trade deficit of the USA that will influence on dollar positions.
Besides these days there is observed investors' attention to pound sterling, that puts pressure to the dollar in the GBPUSD pair. According to publication of the most influential newspaper in the world of finances of the UK Financial Times the government of Tony Blair considers the question of repatriation of incomes from abroad to the companies on the territory of the country without tax payment.
This sep makes Great Britain more attractive for investments from the large international corporations. News promoted rise in the pound up to the week top vs. the dollar and euro as the market remembers that the similar bill in the USA in 2005 led to rise in the dollar by 10% vs. basic currencies.
As a whole the market is against the dollar however the large players do not hurry up with entering the game, expecting tomorrow's ECB decision on rate. Most of analysts forecast that the rate will be left without changes, however the market will wait for ECB President comments concerning the decision about the rate at the next meeting of ECB Governing Council in May, the probability of rise in the rate at the next meeting is considered as 80%.

 


 

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19/12 21.15
TickerBidAsk
USD/CHF1.15601.1562
GBP/USD1.99541.9956
USD/JPY113.4100113.4300
EUR/USD1.43521.4354
AUD/USD0.85770.8581
USD/CAD1.00521.0056
EUR/GBP0.71920.7194
EUR/CHF1.65951.6599
EUR/JPY162.7900162.8300
GBP/JPY226.3000226.3600
GBP/CHF2.30702.3080
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