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Review of the FOREX market for 22.01.10

Feb 19th, 2010 | By admin | Category: News International Markets

Dynamics
dollar adjusted against other major currencies. At the same time EUR /USD pair moves toward 1.4200, the pair GBP /USD in range slightly above 1.6100, and the pair USD /CHF is around 1.0400. Japanese yen rose against other currencies. When the pair USD /JPY traded at around 90.00, and the pair EUR /JPY remains below the 128.00 mark. Commodity currencies can not be strengthened against the U.S. dollar. Thus, the pair AUD /USD traded below the 0.9100, the pair NZD /USD is around 0.7150, and the pair USD /CAD decreased slightly after testing 1.0600 marks.

Causes
On Friday, it was not published any new data from the U.S. and the U.S. currency continued to fall against the backdrop of the technical factors, as well as concerns about the possible consequences of the proposed Obama Administration rules of banking regulation, create uncertainty about the prospects for further recovery the U.S. economy. At the same time, the overall risk appetite remains very low, since the problems with the sovereign debt of Greece, and concern about China"s actions, which may take measures to curb economic growth, forcing investors to exercise restraint when buying a risk-sensitive currencies.
At the same time, the British pound and the Canadian dollar came under more pressure after the latest data on retail sales in those countries fell short of expectations.

What to expect?
At the moment the situation on the market looks uncertain. On the one hand the problems in the eurozone and fears of monetary policy in China are putting pressure on the risk-sensitive currencies. On the other hand, investors have to take into account the possible consequences of Obama"s plan for banking regulation, which are likely to have a limiting effect on the prospects for recovery of the U.S. economy, thus reducing the attractiveness of the dollar. It is not excluded that in the short term, major currencies will be traded in the range without significant changes.
At the same time, new areas of trading can be expected to ask for this and next week"s important macroeconomic data from the U.S. and other countries. In particular, the greatest interest in the upcoming weeks will attract the outcome of the Fed meeting and the publication of the first data on the U.S. GDP in the IV quarter. Both of these events could have a very significant impact on the U.S. dollar.
At the same time, today the most interesting are the figures for sales in the secondary housing market, the U.S. in December. The expected decrease in activity in this market may have on the dollar a little extra pressure.

Why worry?
The joint action of countervailing factors are not excluded volatile changes in the position of the U.S. dollar in the short term.

Russia"s new ambassador Zurabov arrived in Kiev
Banks shall be driven from securities
Responsibility to enforce

Barack Obama has begun to reform the U.S. banking system ...


Russia indices by noon managed to close the morning gap and get to the positive region
Recommendations on the shares of Gazprom, Lukoil, Rosneft, Gazprom Neft, Sberbank and VTB
It is unlikely that correction of Russia"s market will continue strong in the coming days
The turnover of trading on the MICEX Stock Exchange amounted to 84513.6 million rubles
In the near future is expected to continue growth in the major world indices
Fund Finam - Capital investments has become more accessible to investors

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