The outgoing trade week again reserves the many questions
Oct 9th, 2009 | By admin | Category: News International MarketsToday, October 9, trades occur mixed. After quite an intense reduction, against the background of the publication of negative index of consumer prices in Germany, currently the euro has gradually wins back drop, bargaining in the area of 1.4750. Of the remaining publications, the greatest interest remains in the balance of trade in the United States. It is likely that if the negative analysts' predictions are correct, the dollar will again be subjected to sales.
Leaving trading week again reserves the many questions. During the week, it was possible to observe the gradual weakening of the dollar against the backdrop of the emergence of new unrest. One of these new unrest has become very expensive gold, quotes, of which the auctions on Thursday, October 8, rose to 1054.75 dollars per ounce. This mark has become the new historical maximum. As analysts believe, so the rapid growth of gold is a reflection of the weak dollar, which in turn believe less and less.
Macroeconomic calendar this week was pretty intense, because closer to the middle of the week on the market once it was possible to observe a sharp increase in volatility. So, on Tuesday, it became known that the Reserve Bank of Australia lifted interest rate by 0.25 basis points to 3.25% level, which was rather unexpected decision. Recall that among the major Central Bank, Bank of Australia, and so has the highest interest rate. The same day came the disappointing data on the volume of industrial production in the UK for August. According to the volume of production decreased by 2.5% in monthly terms, which proved to be many times worse than forecasts. Nevertheless, it is possible to emphasize that the position of the single European currency, these data only slightly affected, and it continued its rise against the U.S. dollar. In turn, couple pound /dollar reacted to the fall in output data, and up to the day the tool closed in negative zone.
Wednesday proved to be quite a calm day, and on the background is not too positive data on the dynamics of GDP in Europe, the dollar was able to win back its position slightly.
On Thursday a press conference at the ECB, as well as made public a decision on interest rates, the Bank of England and the ECB. Despite the fact that there are no surprises, these events are not presented with (in particular, as expected, banks left rates at previous levels, but the tone of statements by head of the ECB was neutral), the market reacted quite violently, and the euro once again updated its local maximums against dollar. The head of the ECB JC Trichet said in particular that the current level of interest rates in Europe is adequate, however, among the applications clerk slipped a note of uncertainty about the future prospects of economic growth. Trichet also said that in the near future inflation in the region begins to show gradual growth.
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