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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.

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.

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.

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.

Iceland currency is quite close to the dual exchange rate with the central bank that trades foreign currency to local banks at much lower price in comparison with international market rates. Last week the government of the country started to control the banking system of the country and has already put several restrictions on foreign exchange by carrying out everyday auctions intended to establish the value of country’s currency.

ICE is an Intercontinental Exchange that is a global operator of futures exchanges and over-the-counter (OTC) markets. Today ICE made an announcement saying that ICE Futures US will start million-currency-unit versions of 12 current forex futures contracts in the November 2008. These new contracts are called ICE Millions. They include advantages of futures and OTC products as well and provide current forex market with transactional efficiencies and risk management methods.

European currency continued its decrease in relation to the USD after the news that the Euro confidence declined sharply was issued. This event has also led to the deteriorating of the possible growth of the interest rate from the European Central Bank.

According to the latest forex data the USD decreased on Monday after the investors suggested that the economic climate of the USA remained negative one. Thus the USD lost definite power from the positive US housing and consumer confidence numbers last week.

The latest events that get the USD back to its previous positions enabled the US currency to return all it has lost. The recently issued data about durable goods orders appeared to be quite higher than it was forecasted.

According to the latest forex trades data the Euro continues its fall that is caused by the many low economic numbers showing nothing but serious troubles in the Eurozone economy. The numbers provided by the manufacturing and services sectors showed a real decrease in these sectors and made the recession really possible.