| EURUSD, GBPUSD. Historical top is broken through. |
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21:05 07/10/2007 |
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Friday data on employment showed that businessmen in the USA created more nonfarm workplaces than it was expected in June, however it was much less than the previous indicator in May. The revised values for May showed growth of payrolls up to 190000, however for June data demonstrated growth of payrolls only up to 132 000. Market’s reaction to these data was rather weak, investors’ moods against the dollar did not change though quotations were consolidated at the levels achieved on the eve.
Peter Moriki, the Professor of University of Maryland State considers that the market of vacancies has greater potential for qualified workers owing to that the dollar is a little bit overestimated in comparison with the Asian currencies - the Japanese yen and the Chinese yuan, the market of common labor in the USA does not get through with low labor rates in the Asian countries. Therefore drop in a dollar exchange rate can help as a whole the labor market. Today quotations of eurodollar have broken through a historical level of 1,368 dollars for 1 euro. Investors concentrated on differentials of rates between the European banks - ECB and Bank of England.
David Powell, the senior economist in IDEAglobal in New York, in interview to Agency Reiter, noted that dollar falling is a reflection of market’s opinion about that rates of the central banks of the basic countries start to force up, whereas FRS rates are fixed for indeterminate time.
On a background of calm in a stream of financial news the market’s attention today has been concentrated on statement of Chairman of FRS Governing Council Ben Bernanke in the National Bureau of Economic Research.
The market believes that Ben Bernanke will again confirm opinion of the Federal Reserve that rates meet the requirements of current economic conditions and will be kept up to the end of year.
As a whole the basic vector of market’s moods remains in favor of the European currencies, against dollar. And break through a level 1, 368 was a logic continuation of these moods.
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