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The USD changed slightly throughout the afternoon forex Asian trading session in relation to Euro and Japanese Yen. However it decreased to euro to $1.5597 throughout the night caused by the announcement of the European Central Bank President Jean-Claude Trichet about the possible increase of the interest rate in the next month after the slowing down the inflation trend. According to David Mann at Standard Chartered yesterday’s changes of Euro will be followed by the new numbers concerning unemployment situation today.
The latest forex trades data says that the Euro was traded at $1.5583 and the USD – at 106.12 Japanese Yen. As many experts suppose the European Central Bank may really use the interest rates growth as a tool to fight high inflation that has reached the highest level for the last 16 years.
According to senior forex analyst at Thomson IFR Markets – John Noonan the reaction of the forex markets was affected by the changes of the Euro not USD. Therefore the ECB President minimized the effect of the Federal Reserve Chairman speech on the US currency.
Moreover Noonan has added that now the main attention will be paid to the level of the US non-farm payroll data that should be issued on Friday and in case this data will turn to be negative it may lead to the another decline of the USD.
Due to the opinion expressed by David Mann the USD will remain low against the Euro because of the possible growth of the interest rates in Europe and the Central Bank of the United States will likely continue its present interest rates policy with an aim to contribute to the economy growth.
The possible growth of the ECB interest rate according to the experts will reach the point of 0.25 percent in the next month. It will be the first change of the European interest rate since the last June while the Federal Reserve has changed its interest rates for 7 times since the last September.