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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

EURUSD, GBPUSD. Quotations are consolidated at new historical levels.

22:25 07/11/2007

After yesterday's upward jerk eurodollar quotations were stabilized at new historical top - levels near the price 1,3786 - the highest price mark on dollar ever achieved by single European currency.

 

As analysts believe dollar falling was caused by fears among the investors, arisen concerning low rates of growth of the American economy.

 

The pound sterling broke out a record of rise and reached the highest price mark for last 26 years - 2,0267 dollars for 1 pound sterling, the pound has never been so expensive since 1981.

 

Higher euro in comparison with dollar makes the goods made in Europe more expensive as compared with the American goods that reduces their competitiveness in the world markets in the USA. That caused anxiety of the European governments and strengthened pressure from their side upon ECB Head.

 

However the member of European central bank Juerdjen noted that the role of the increased rate of euro against dollar in pressure upon economy of the European countries is exaggerated a little. As approximately 50 % of the goods made in Europe are consumed at home European market that makes them less vulnerable to fluctuations of exchange rate.

 

Analysts consider narrowing of differential of rates between ECB, Bank of England and FRS as one of the main causes of growth of the European currencies against the dollar.

As a whole the basic vector of market moods remains in favor of the European currencies, against dollar. And break out of a level 1, 368 was logical continuation of these moods.

 

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