The USD turns to growth again
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The result of morning forex trades in Tokyo was the certain growth of the USD in relation to major currencies. The reason was the support the USD gained from the Japanese investors. However the short-term forecast for the USD is still quite negative due to the decrease of credit rating of Merrill Lynch, Morgan Stanley and Lehman Brothers.
Furthermore, Bradford & Bingley Plc reported the weak data and announced about a sale of 23 percent share to a private equity company.
According to Yosuke Hosokawa – a forex dealer at Chuo Mitsui Trust and Banking the decrease of the ratings by Standard & Poor’s reflects the fact that the credit crisis has not come to the end yet and contributed to more attention paid to yen and Swiss franc from the safe haven purchase point of view.
So the important data that is expected to be issued this week are the speech of the Federal Reserve Chairman – Ben Bernanke, the changes of the oil prices and the non-farm payroll numbers.
Due to Hosokawa investors may turn back to inflation and interest rate hikes from safe haven purchases depending on the above mentioned data.
Finally, as for the Euro, it decreased a bit because of the unclear monetary policy pursued by the European Central Bank.
