The USD decreased sharply in relation to the Euro
The United States dollar is still decreasing in relation to the Euro and it seems to reach its lowest point again. This was caused by the reason that the US Treasury intention to provide emergency assistance to the largest mortgage groups – Fannie Mae and Freddie Mac was not sufficient to settle down the rest of market members.
According to the last forex trades data the European currency comes to the point of $1.60 and the British pound increases over the $2.00 mark this is the first time the British currency has reached this point throughout current month.
As for the Japan, the yen growth was partly supported by the decreased confidence in financial markets. This has happened despite the fact that the Central Bank of the country underlined the necessity to remain neutral at interest rates decisions. Therefore the Bank of Japan provided no news keeping its call rate at the point of 0.5 percent for the 20th interest rate decision meeting.
However the important data that can affect market members is to be released soon. It is the US retail sales and producer index and the report of the Federal Reserve chairman to the Senate Banking Committee.
According to analyst at BNP Paribas the speech of the Ben Bernanke may turn to be positive and promising certain support to the market however this is only the possible event. Considering the current dollar trends the issue of other important data seems to be the key point.
As for the Euro trend, several important releases are also expected. German ZEW index seems to continue its decrease and will probably reach –57 point in the current month. Due to the analyst at BNP Paribas the money are put on a weak reading that comes for the idea that the German economy will turn to the positive trend or fall into recession.
