EURUSD, GBPUSD. Activity of market is lowered because of weak base over the USA and EU.
22:51 10/03/2007

Euro quotations were consolidated near a mark of 1,41 dollars for euro. The market is dull on a background of the weak base, both over the USA and Eurozone.

 

The European politicians and businessmen expressed fears concerning increase in euro rate. The euro reached "a sensitive threshold for the European companies" and politicians of Eurozone should put pressure upon the USA, Japan and China to carry out revaluation of their currencies before a forthcoming meeting of the G7, largest European business-lobby declared.

"After crossing a level of 1,40 against US dollar and a high estimation against the Chinese yuan and the Japanese yen, the exchange level becomes sensitive for the European companies", - the President of the European Federation of Businessmen BusinessEurope Ernest-Antoine Sair told to Jean-Claude Junker, Head of Eurogroup, in his letter from October, 2nd.

 

Meanwhile ISM service index in September dipped to 54,2 against 58,0 in August. The index for September was revised upwardly in comparison with an initial estimation 54,0. Value of the index above 50,0 means growth in the given sector and value below 50,0 - slowdown. PMI of Eurozone also showed delay of growth in the given sphere in September as euro rise affected negatively the export.

 

The similar index over the USA as in services sphere and in industrial as well demonstrated reduction.

Drop in players’ activity in the market also was caused by expectation of ECB decision on the rate, which will be published on Thursday. The majority of analysts consider that ECB rates will remain at a former level, therefore most likely the status quo in alignment of forces on forex remains.

 

Recommendations hold good: On the open positions: stop on euro is kept at fixed profit at a level 1,4099.

 


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