Wall Street weighed on the dollar
Thursday, 17 July 2008
Although the dollar appears in Thursday morning to face up to the single European currency in the foreign exchange market, the rising dollar is in no way a reflection of better health of the U.S. currency. Indeed, geopolitical instability, characterized by the coup burst of Iran, and tumble on Wall Street yesterday weigh heavily on the dollar on the currency market. Indeed, fears about a new rise in the price of a barrel of oil have resurfaced in the minds through the escalation managed by the Iranian regime. The press conference of OPEC today on the prospects for 2008, might calm a time minds. In addition, the fall on Wall Street has worried the markets that were rather surprised by the resilience of the dollar. Indeed, the Dow Jones yesterday posted a loss of 2.08% and the Nasdaq composite has sold 2.60%. Specialists now believe that Wall Street has entered a phase of heightened pessimism which is characterized by a decline of over 20% of the market compared to its peak. Finally, a direct consequence of this climate of uncertainty, the currency market shows a certain instability, whereas the decision of the Monetary Policy Committee of the Bank of England is expected during the day. Unanimously, currency traders expect it adopts the status quo, seeking primarily to ensure that rising inflation does not inflationary in the long term. To make the right trades this afternoon, attention must be paid on the dollar, the publication of weekly claims for unemployment benefits to the USA and the speech by Ben Bernanke and Henry Paulson before the U.S. Congress.
Labels: forex
posted by Master @ 03:21,