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Traders expected the U.S. economy too much, the dollar declines

Jan 20th, 2010 | By admin | Category: News International Markets

U.S. dollar on Monday morning under pressure from the currency forex market by investors who were not prepared for the negative data on Non farm payrolls, which on Friday showed an unexpected reduction in jobs outside the farming sector in the United States by 85 thousand against expected -- 11 thousand.

Traders sold the dollar, assuming that the Fed now has the necessary confirmation is still weak economy and now will continue to promote the system. Thus, all in the market resulted in the fact that the uncertainty about future levels of U.S. interest rates rose - no one can say exactly now, when the Fed is ready to raise interest rates.

If even a week ago, 60% on forex investors were confident that by June the rate in the United States will be raised, then the date hereof to maintain this point of view still 33%.

So buck was out of favor with the traders expect too much of seriously damaged the American economy and the major currencies were able to grow - in particular, showed a positive Bark euro Aoussa and New Zealand dollar. So far no luck the UK pound sterling - comments of the authorities indicate that the UK economy is still in recession, and this morning it became known that Gordon Brown, Prime Minister, once again could not find common language with the opposition on issues of deficits budget. All this together has yet to pound downward pressure.

In the first trading day of the ensuing weeks, as expected, the pound will not go beyond the boundary of the corridor 1.6050-1.6080, the euro /dollar, likely will be traded in the range of 1.4400-1.4600.

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