Forex-Here.com All about Forex

According to the latest economic data the United States dollar increased in relation to other major currencies but still it was quite affected by the fact of the decline of consumer spending and sales of property. The level of the consumer confidence is likely to fall to the 60.0 in the current month. According to Sal Guatieri at BMO Capital Markets the US consumers experience hard times due to decreasing house prices, growing energy and food prices and increasing rate of unemployment. The present fall of the consumer confidence level is one of the largest the US economy experienced.

The IFO survey issued recently caused the sharp growth of the Euro in relation to the USD. The business climate index provided in the IFO survey experienced a growth reaching 103.5 point instead of 101.9 predicted by the experts. Such trend reflects the situation at the German Business market that seems to be quite stable at the moment. According to the Capital Economics official Jennifer McKeown the growth of the IFO did not compensated the previous month decrease in full but it improved anyway.

According to the latest news from the Forex markets the United States dollar continues to grow in relation caused by the opinion that there will be no more declines of the interest rates. The Federal Reserve considers the inflation as the one of the main problems and still is trying to pursue the policy in the proper direction.

The CMC Markets official James Hughes said that many forex traders heartened by the yesterday’s speech of the Federal Reserve Chairman despite the fact that this speech hardly resembled the monetary police roadmap.

The British pound decreased rapidly especially in relation to the United States dollar throughout morning Forex trading session after the necessity of another interest rates cut by the Bank of England became quite obvious. The negative information that caused such fall is the reports concerning the fall of the house prices and decline of the retail sales level. So the British currency reached the 1.95 point in relation to the USD.

The latest Forex trades showed the Euro increased again after the short period of decline however this instability shows nothing but the problems of the European economy. The purchasing manager’s index for the previous month increased up to 51.8 point but the growth trend was reported only by Germany; as for the Spain, France and Italy they have reported the slowdown.
As for the whole market opinion there are talks about further decreasing of the Euro.

The main point to be singled out is that the Japanese Yen declines for the second consecutive day on Forex. The sole reason is the current situation occurred at the markets. The United States dollar became more attractive for the traders and that is why the Japanese currency is being sold off.
We should also mention that despite the fact that the greenback increased for the second time this week in relation to Japanese Yen, the Yen itself has also decreased in relation to such currencies as British pound and South African rand by 5% and 11.5% interest rate correspondingly.

The United States currency experiences growth caused by high numbers of employment index and possibility of the Federal Reserve to increase the liquidity at the financial markets with the help of the Term Auction Facility auctions extension and Fed’s agreements with Central banks of other countries.
The Fed’s intention is to increase TAF auctions from $50 billion to $75 billion and extend its swap agreements wit central banks of Eurozone and Switzerland.

The main point we should consider is that the Japanese yen turned to be quite strange throughout the trading session this day and has come to the end of trades at low positions in relation to the United States dollar and British pound but strong enough against the Euro, Australian and New-Zealand dollars. As for the inflation level in Japan we have to mention that it increased to 1.2 percent throughout the previous month.