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Turkish lira reached its highest level in three weeks, as stocks and prices of bonds increased on Thursday. As the signs of the possible recovery of the US economy were reveled, it became clear to market traders that the Turkish prices of stocks are at their bottom.

Professionals say, that increasing consumer spending in the United States are a clear indicator of economic pick up in the biggest economy in the world, meaning that further recovery is coming up in the next months.

On Friday the Yen decreased its level against both the dollar and the euro, as market traders came to a conclusion that the worst recession in the global economy is coming to an end, which increased traders’ appetites for more risky assets.

At the beginning of the last session of the week, Asian markets were higher. One of the reasons for this situation is the announcement of Chrysler bankruptcy last evening.

Both dollar and euro rose versus the yen on Friday morning in Asia, as the fear of spreading of swine flu started to vanish. But events, that are about to happen in both Europe and the States will hit the Forex market with declining rates for both currencies.

American currency was pressured in early European trades due to end of month dynamics for fixing. Euro was rising in the first half of the day, reaching the level of 1.3385 against the dollar, and then decreasing back to the level of 1.3200.

During morning Asian trades on Friday, May 1st, both dollar and euro increased versus the yen, as it turned out that swine flu fears of the foreign exchange market are in reality not as bad, as were expected.

Many dealers claim that rising level of the American currency will not last long, because many coming up events, that are due to happen in the United States and in Europe will make many investors sell both the greenback and the euro again.

Early morning Thursday trading sessions showed weakening of the US dollar against European, British and Swiss currencies. Declining, the dollar reached its almost two-week lowest against the pound of sterling. And the earlier session’s gains of dollar against the yen in the Asian market were pared.

Dow Jones closed at the level of p. 168.79, equal to 2.1%, while Nasdaq was closed at 2.3%, or p. 38.13, which means that Nasdaq closing was at the best level in about six months, while Dow Jones closed at a two-months highest level. The S&P was closed at the highest level in three months.

During morning trades on Thursday the yen continued loosing its positions against both the euro and the dollar, due to the governmental report regarding the decrease in Japanese industrial production by over 22% during the first quarter of 2009, comparing to the fourth quarter of 2008.

Although the dollar stood lower versus many major currencies, the USD level had minimal reaction to the information reveled by the Federal Reserve about American gross domestic product which in the first quarter fell much more than it was planned.

Right after the release of the information, the dollar almost didn’t change its positions and it is still holding its positions against both the euro and the pound of sterling.

The most important aspect of daily life that affects the situation on the Forex market the most are economic news. Unlike the stock market, which is mostly influenced by micro-economy of companies, the currency market is influenced by macro-economic factors of economies in different regions and parts of the world. The most important news for foreign exchange trade is generated by government authorities, such as central banks, economic associations, and other.

On the 27th of April peso falls more than 2%, while dollar gains.

Both yen and dollar are rising on Monday, while Mexican peso falls because of concerns about spreading of the swine flu, which has already become a reason for death of over 80 people in Mexico. People in the United States of America and in Canada are also getting infected.

The World Health Organization called swine flu a public health emergency, which is of an international concern. The swine flu is considered possible to become a serious disease, which might have a global outbreak.

Euro rose in the foreign exchange session in London, as the results of German Ifo survey were released. At the beginning of Friday (European time), the euro was traded at 1.3190, and even temporarily reached 1.3260, and then got settled at the level of 1.3240, when the survey data was released.

As a result of the survey, traders could observe, that the index of expectations has been rising for three months in a row. And although these are not results of growth or any positive incline, these results of the survey indicate that the real economy is starting to be less pessimistic.

Although Wednesday was a very calm trading day on the foreign exchange market for many major currencies, the pound of sterling fell significantly, as a result of reveling of the annual budget statement by the government of the United Kingdom of Great Britain.

On Friday the Dollar hits its lowest level in the past three weeks, decreasing below Y97, as a result of multiple negative news reports from the American automakers, which made players instantly sell a lot of US dollar.

As the Wall Street Journal reported on Friday morning, that American auto company Chrysler LLC may file for bankruptcy as soon as next week, which will lead to a much deeper recession in the American economy, the dollar started losing its positions.

Dollar hits its low against the Yen, the Euro and many other currencies on Friday, as numerous hopeful signals appear in the world, showing possible slowdown in the pace of decline of world economy.

Positive data reports gave support and strengthened both Euro and the Yen. As a result of recent surveys done by the Ifo Institute in Germany, which indicated that after a long-term low in March, business confidence started it’s improvement at the beginning of the second quarter.

On Friday Yen hits its highest level against the US dollar in the past four weeks. Yen, which was one of the most purchased currencies in February and March, lost its popularity by mid-April.

Dollar has not been weaker against Yen since the 30th of March, since then it dropped by 0.9%. The main reason for these changes is the fact that China claimed rising of its gold reserves and the fact that China is able to diversify its reserves of foreign assets, though still staying with major world currencies.