The USD decreases throughout the trades
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The United States currency decreased a bit in relation to major currencies throughout morning forex trades in Sydney. This was the consequence of the USD decrease in relation to the yen that turned to be the largest one for the last after the possibility of the credit crisis rebounded. Decrease of the credit ratings of Merrill Lynch, Morgan Stanley and Lehman Brothers contributed to the purchase of the safe haven and lead to the significant growth of the Japanese Yen and Swiss franc. The USD was traded at 104.38 yen and the Euro gained to $1.5541.
According to senior forex analyst at Thomson IFR Markets – John Noonan the markets concentrated on the safe haven once again after a period of great attention to interest rate hikes with an aim to battle the inflation appeared due to growing oil prices.
However the fears about the credit crisis eased after the decline of the US banking index below the point that lead to the crisis of Bear Stearns.
According to the senior financial analyst at Global Forex Trading – Ian Copsey the forex market experiences problems that it wishes to solve by the turning back to increases of the interest rates.
As for the other news the meeting of the Central Bank of Australia will likely remain the interest rate at its previous position of 7.25% and keeping therefore the rate at the highest point it has experienced over the last 12 years.
The same behavior is expected in relation to the Bank of England and European Central Bank that will unlikely change the interest rates at the forthcoming meetings.
Due to Ian Copsey these Central Banks experience the need of interest rates cut meanwhile the economies of these countries experience the slowdown of the growth and growing inflation.
As for the US data Ian Copsey mentioned the further direction for the USD will be defined and the market will likely to be instable.
