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Wednesday, June 12, 2013

Economic climate and currency war

In light of this current climate, you are not wrong when you think that there is a war between currencies in Europe, Japan and the United States takes place on a daily basis.

Here offer between the lines about the currency war
Currency dollar falls too low, even with the formal steps of the U.S. Federal Reserve Bank. The euro has risen so much, has been the yen's rise too much too. But the question remains here, you would be this intense battle beginning of the end? But there is one thing for sure in this environment that there is an excellent opportunity to earn points by forex traders fluctuations and changes in the activity of prices enables traders to take advantage of the many opportunities in this market.

The last battle resulting from the words of a member of the Board of Directors of the European Central Bank, Peter Barrett, said on Tuesday afternoon, "said the central bank offers a lot of" concern "about inflation in the European Union, which is less than expected, the European Central Bank cut price Refinancing Parent to 0.5 percent and maintained at its meeting in May on the deposit rate at zero. and kept rates unchanged in June-July, but the euro zone suffers from an annual inflation of about 1.4 percent, which remained much lower than the central bank's target, but close to two percent.

There is room to work in the normative standards, that the decision about the normative standards is the subject of a very rich and interesting, but the question is, what if rates reached negative territory? It is not conceptually impossible that very experience great difficulty from an economic point of view, the time value of money becomes negative with time. However, in exceptional circumstances, you can use all the tools. When we talk about the use of negative rates, we are fighting here at a fraction of the arsenal that central banks can use. However, the negative rates may have "unintended consequences."

The remarks came Mr. Barrett after suggested Mr. Pollard Bank of St. Louis Federal Reserve on Monday there would be no slowdown in moving ahead with a plan to stimulate the U.S. Federal Reserve, has given officials at the Bank of Japan explanation of their policy's current early on Tuesday in the morning  meeting
, which sent the Nikkei to the bottom, while the yen rose.




All major currencies fell against the yen. Where the dollar / yen to the lowest level at 95.596 to regain some ground at the end of the New York session. 

The dollar also fell against the pound and the euro, where the daily lows at 1.5653 and 1.5520, while the time of writing at 1.5639 

The Eurodollar reached Until it now  $ 1.3311, having achieved significant gains in the meetings on Tuesday, has ranged from the lowest level at 1.3239, while the daily highs at 1.33175. 

The Australian dollar is still under great pressure from all sides, and it was the lowest level for Tuesday 0.9325 while the highest level at 0.9475 against the dollar. 

The second day of the hearing in the German Constitutional Court could provide to traders who deal with the euro pairs some fireworks. Scheduled to release the unemployment rate in the United Kingdom and the number of job seekers in the London session. It is expected that the unemployment rate remains at 7.8%.

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