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Forex Market 21/10/2009

Oct 21st, 2009 | By admin | Category: Reviews and ideas

 

euro exchange rate to the dollar on Tuesday once again failed to overcome the resistance at 1.4980 /00.

At the same time macroeconomic data and corporate statistics yesterday on the whole maintained their favorable for investment in risk in nature. Index of industrial inflation in America in September of this year was -4.8% (g /g) against their average forecast and the value of this indicator in the previous month, equal, respectively, -4.2% and -4.3% in annual terms.

This performance earnings per share of world business leaders such as Bank of New York, Lockheed Martin, DuPont, Pfizer, United Technologies and Yahoo!, In III quarter. TG significantly exceeded market forecasts.

Nevertheless, the trends of the past week of action to activate the world's leading regulatory structures aimed at curbing the negative trends in U.S. dollar in the international market was apparently perceived by players in the financial segment as a signal to reduce their purchases in risky investments.

According to yesterday's media, President of the ECB JC Trichet, head of the Eurogroup JC Juncker and European Commissioner for monetary policy Kh Almunia before the end of this year intend to visit China to discuss the depreciation of the euro against the Chinese currency.

Against this background, the characteristic is the announcement in a statement Monday the head of the Federal Reserve B. Bernanke, who in his speech called on the leaders of Asian economies to increase spending on pensions and raise the share of national GDP of these countries public spending in order to reduce international payment imbalances.

The results of the recent past summits involve the growth of international cooperation in the sector of anti-crisis policy. In this regard, Fed, apparently, has enough good reasons to expect increased support monetary and financial system of America from other major economies in the medium term.

Apparently, the issues related to the problem of global payments imbalances will become one of the main themes of the next meeting of leaders of G20, which will take place soon enough, on November 6-7 this year

Given these factors, it seems that in anticipation of the November summit of the Greater Twenties negative market pressure on the U.S. currency may decline. Events in recent quarters, may have taught the market does not ignore the information indicating the change of macroeconomic and financial policy priorities of the world's leading regulators. Moreover, as the statistics show in recent months, unfavorable to the U.S. dollar by the easing of fiscal and external payments indicators U.S. slowing.

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