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Turkish lira reached its highest level in three weeks, as stocks and prices of bonds increased on Thursday. As the signs of the possible recovery of the US economy were reveled, it became clear to market traders that the Turkish prices of stocks are at their bottom.

Professionals say, that increasing consumer spending in the United States are a clear indicator of economic pick up in the biggest economy in the world, meaning that further recovery is coming up in the next months.

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.

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.

Although the dollar stood lower versus many major currencies, the USD level had minimal reaction to the information reveled by the Federal Reserve about American gross domestic product which in the first quarter fell much more than it was planned.

Right after the release of the information, the dollar almost didn’t change its positions and it is still holding its positions against both the euro and the pound of sterling.

Nowadays there are a raising number of currency traders, marketers and strategists that are starting to think about dollar’s fate. Interestingly whether the finance ministers from the world's biggest economies will decide to support the US dollar.

The United States dollar kept its high positions supported by decreasing oil prices and several certain announcements from the Federal Reserve. The oil prices have decrease below the $130 a barrel point and the Charles Plosser at the Fed made his announcement concerning the possible inflation. Due to his words growing inflation could cause the Federal Reserve to increase interest rates before any recovery at the labor and financial markets and this is quite supportive for the USD. Moreover the USD was also supported from the announcement of the Hank Paulson – US Treasury Secretary who said about the importance of the strong currency.

The morning forex trades in Sydney showed unstable United States dollar in relation to major currencies such situation was caused by the more aggressive intentions of the central bank of the country in the process of constraining inflation. The central banks of the US and European countries changed their intentions concerning soon interest rate hikes thus have caused the split among the traders about the currency moves.

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The possibility of the interest rate growth by the European Central Bank in the next month caused the decline of the United States currency throughout the afternoon forex trades in Asia. It is expected that the European Central Bank will raise the interest rate after such intention was expressed by its president with intention to constrain the inflation.

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The United States currency has not almost changed in relation to other currencies throughout morning forex trades in Sydney. Thus the USD has strengthened the highs it has gained after the possibility of the interest rate hikes expressed by the Federal Reserve officials.

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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.

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The forthcoming issue of the US economic numbers and new interest rate by European Central Bank contributes to slight change of the USD in relation to the Euro and Japanese Yen throughout the afternoon forex trades in Asia.

The US data to be issued includes the unemployment report for the May and non-manufacturing index.

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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.

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The United States currency decreased a bit in relation to other major currencies throughout the morning forex trading session in Sydney due to the outlook for the weak US economic data and announcements by the Federal Reserve chairman – Ben Bernanke and the president of European Central Bank – Jean Claude Trichet.

The euro slipped on Friday, relinquishing early gains to hit a two-week low against the dollar after surprisingly weak German retail sales figures added to the view that the euro zone economy may be weakening.

German retail sales unexpectedly fell for the second month in a row in April, suggesting cracks in the region's economy which until now had been resilient to a global slowdown even as inflationary pressures increase.

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The United States currency remained at quite high positions in relation to other currencies throughout the morning Forex trades in Sydney as investors considered the duration of the USD being strong. So the USD was traded at 104.74 yen and the Euro – at $1.5654. The gains of the USD were caused by the positive data provided by the durable goods orders report for the April. As for the new orders for the goods related to durable ones decreased only 0.5 percent throughout the April thus showing the outlook for the 1 percent decline was the wrong one.