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Euro is still unable to break the 1.50 mark

Oct 21st, 2009 | By admin | Category: News International Markets

Yesterday, before the opening session of the American euro-dollar attempt to get close to the mark of 1.50 failed. America opened immediately in the red zone, the Dow Jones on the outcome of yesterday's index dropped by 0.5%, to 10041 mark. Euro fell to 1.4880. Today stock markets again in the red zone, futures on the Dow Jones showed a further decline of 0.5%. Oil prices collapsed to 78.16 dollars per barrel mark WTI. Euro, however, grew to 1.4962, and is now at 1.4930. For other currencies, the dollar feels even weaker. Thus, the New Zealand dollar today, updated the maxima of the year after the head of the Reserve Bank of New Zealand Alan Bollard said that the increase in the exchange rate will not be an obstacle to the increase in the price of money. However, so far the consensus forecast Bloomberg shows from the nearest meeting of the RBNZ October 28 economists do not expect a rate hike from the current 2.5%. But from the Bank of Australia is the second increase in a row waiting for 3 November, from 3.25% to 3.50%. Australian dollar today came close to year highs yesterday. Russian Ruble is also close to the highs, now deputy minister of economy of Russia Andrei Klepach said that the ruble might rise to 23 rubles per dollar in the event of rising oil prices. However, increasing not only the commodity currencies. Today the pound sterling rose to records of the Bank of England from the last meeting, which showed that all members of the Monetary Committee unanimously voted in favor to leave unchanged the volume of quantitative easing. Moreover, in the Scottish Herald newspaper published opinions of the Bank of England Mervyn King, that it would be wise to take into account the possible prospects of higher rates.

Meanwhile, the U.S. Treasury publishes today a cache issue bills of $ 15 billion for a period of 42 days. At the same time tomorrow the Treasury will have to pay immediately release the two cache bills on $ 35 billion, a 70-day period, another 328 days.

Total, including regular bills, this week paid off securities at $ 21 billion (annual bills) 27 (6-months. Billy) 32 (3-months. Bill) 21.9 (4-weeks. Bill) 35 (328-days. cache-bills) 35 (70-days. cache-bills) Total 171.9 billion dollars in the same time, this week brought in $ 27 billion annual Bill 30 (6-months. Bill) 30 (3-months. Billy) 24 (4-weeks. Bill) 15 billion (hosted this 42-day cache bills) total 126 billion dollars this way, the net redemption this week will be 171.9-126 = 45.9 billion dollars, we have previously noticed that the U.S. Treasury is beginning to attract funds less than repaid. This dollar liquidity to the market fall, and will exert pressure on the dollar.

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