Euro quotations on dollar approached to a significant level - 1,3670, to a historical top. Since the date of its existence that is since 1998 the euro reached this mark only once, in the end of 2004.

The market which was against the dollar, reacted vividly to Trichet’s statements at yesterday’s press-conference on results of meeting of ECB Governing Council.

ECB left the rate at a former level 3,75 %, taking into account an inflationary background and steady growth in economy of the Eurozone, Governing Council decided to make pause in an economic monetary rate on increase of the rate at this meeting. However in his comments to this decision ECB President let the market know that this pause is temporary and that rates will likely be increased at following meeting of Governing Council which takes place in June of this year.

Such decision was made by the European Central Bank after Eurostat published data over 13 countries of the European Union which showed the confident growth of economy of these countries on the average by 2,7 % on results of the last year that is better than a preliminary estimation of 2,6 %, and almost twice as much parameters of 2005 when parameters of growth of EU economy made only 1,4 %.

In his report Trichet emphasized that risks of inflation are kept despite firm economic indicators, excessive wages-push and growth of retail prices can stimulate additional inflationary pressure, that in turn will affect economic growth.

Trichet noted ECB supposes that ECB rates are at a sufficient low level that it could influence on economical rise, especially if to compare with a level of similar rates of the USA and Great Britain, which make 5,25 %.

Such optimistical conclusions of the European Central Bank concerning economy of EU were supported by the recent report of IMF in which contrast between growth of production and consumption of Europeans and recession in economy of the USA, especially crisis phenomena in a segment of the real estate was observed.

According to other data the incorporated review of German, French and Italian economy demonstrated that growth of gross national product in these countries made 0,5 %, and in 2 and 3 quarters there is predicted growth up to 0,6 %.

The dollar is under pressure of the negative expectations connected with deficit of trade balance of the USA, which report for February is expected today, analysts forecast expansion of deficit to 61 million dollars.

Meanwhile trade war between the USA and China, begun from the complaint of the American government in WTO on increase of Chinese piracy production, increases that also does not add optimism to investors concerning the dollar. Lists of the Chinese import detained in the American ports, daily fill up with new kinds of the goods, pepper pods with high pesticides, fish and other seafood with salmonella were revealed.

The problem, which has arisen with the Chinese goods among the American consumers, ripens already for a long time. The Chinese importers use dangerous chemicals for increase in efficiency that dissatisfies consumers, damping of bad produce from China causes discontent of American farmers. For last 25 years growth of import of the Chinese foodstuffs in the USA was up almost 20 times and makes now 2,26 billion dollars.

As a whole the market is still against the dollar, especially after aggressive statements of trichet concerning ECB rate and Ben Bernanke’s uncertain comments about federal funds rates, according to recent published FOMC minutes. However today if the forecast of analysts on trade balance is not justified and data show narrowing deficit the euro uptrend can designate correction, therefore while we remain outside the market.