U.S. dollar continued its decline. This EUR /USD pair has updated an annual maximum at around 1.4870, the pair GBP /USD rebounded above the 1.5900 mark, and the pair USD /CHF fell to 1.0190. Japanese yen retained position against other currencies. When the pair USD /JPY consolidated marks around 90.00, and the pair EUR /JPY was trading around 133.00. Commodity currencies have strengthened slightly against the U.S. dollar. Thus, the pair AUD /USD rose above the 0.9100 mark, a pair NZD /USD returned to the area of 0.7400, and the pair USD /CAD has fallen to a mark 1.0260.
Causes
U.S. dollar was trading, focusing on stock indices. At the same time due to extremely low interest rates in the U.S. American remains attractive to investors using it to finance purchases high-yielding currencies like the euro and commodity Canadian and Australian dollars. At the same time in the pursuit of high returns, market participants ignored the less favorable than expected eurozone economic data. In particular, Germany's ZEW index and the euro zone were below expectations, pointing out the fragility of economic recovery in the region. Nevertheless, this did not prevent the euro update the annual maximum against the U.S. dollar.
What to expect?
Probably, the U.S. dollar remains under downward pressure for some time. However, market participants may appear good reasons to stop selling the dollar, koimi can be expected macroeconomic data from the U.S.. In particular, today will present the latest retail sales figures. It is expected that the data show a sharp slowdown in sales in September compared with the strong growth of the August. This is indicative of weak demand and lower consumer spending, which cooled the positive market sentiment. Thus if the data would be worse than expected, it could provoke a profit-taking in risky assets, which will lead to an increase in U.S. dollar. Also today, the United States will be published the minutes of the last meeting of the Fed, which may shed light on the current position of the Committee on the exit strategies of programs to stimulate the economy.
In the data from the U.S. investors' attention will be focused on data from the UK as the labor market, as well as industrial production in the euro zone. Both figures can have a significant and controversial impact on the respective currencies.
Why worry?
Unexpected news could trigger strong fluctuations in the currency market. In addition, the dollar is oversold, that the risk of a reversal of long-term trend in favor of the U.S. currency is extremely high.
Review of the FOREX market for 13.10.09
Dynamics
U.S. dollar continued its decline. This EUR /USD pair has updated an annual maximum at around 1.4870, the pair GBP /USD rebounded above the 1.5900 mark, and the pair USD /CHF fell to 1.0190. Japanese yen retained position against other currencies. When the pair USD /JPY consolidated marks around 90.00, and the pair EUR /JPY was trading around 133.00. Commodity currencies have strengthened slightly against the U.S. dollar. Thus, the pair AUD /USD rose above the 0.9100 mark, a pair NZD /USD returned to the area of 0.7400, and the pair USD /CAD has fallen to a mark 1.0260.
Causes
U.S. dollar was trading, focusing on stock indices. At the same time due to extremely low interest rates in the U.S. American remains attractive to investors using it to finance purchases high-yielding currencies like the euro and commodity Canadian and Australian dollars. At the same time in the pursuit of high returns, market participants ignored the less favorable than expected eurozone economic data. In particular, Germany's ZEW index and the euro zone were below expectations, pointing out the fragility of economic recovery in the region. Nevertheless, this did not prevent the euro update the annual maximum against the U.S. dollar.
What to expect?
Probably, the U.S. dollar remains under downward pressure for some time. However, market participants may appear good reasons to stop selling the dollar, koimi can be expected macroeconomic data from the U.S.. In particular, today will present the latest retail sales figures. It is expected that the data show a sharp slowdown in sales in September compared with the strong growth of the August. This is indicative of weak demand and lower consumer spending, which cooled the positive market sentiment. Thus if the data would be worse than expected, it could provoke a profit-taking in risky assets, which will lead to an increase in U.S. dollar. Also today, the United States will be published the minutes of the last meeting of the Fed, which may shed light on the current position of the Committee on the exit strategies of programs to stimulate the economy.
In the data from the U.S. investors' attention will be focused on data from the UK as the labor market, as well as industrial production in the euro zone. Both figures can have a significant and controversial impact on the respective currencies.
Why worry?
Unexpected news could trigger strong fluctuations in the currency market. In addition, the dollar is oversold, that the risk of a reversal of long-term trend in favor of the U.S. currency is extremely high.
After midday the market in Russia can be expected to stabilize the dynamics at the levels achieved
Today the bulls will try to revive the market to the level of 1370 to the MICEX Index
Ministry of Energy: Implementation of all activities in preparation for winter, Siberia UES is in accordance with the plans
Treasury may prohibit the tax authorities to refuse to refund VAT for minor errors in the invoices
Prices for industrial metals in London, moved in the negative zone
Bidding on the euro today will be in the range 1,4760-1,4980 dollar
In the U.S. tomorrow ends the action of the tax amnesty program for citizens, harboring their funds in foreign offshore
Kommersant : state guarantees to attract loans may get cheaper
Nemyrya: EU support Ukraine in this year may reach 200-600 million euros