market was in a news vacuum, however, the euro-dollar has been able to penetrate the 1.30 mark, and show a maximum of 1.3036. And today, enabling output of data on indices of purchasing managers in Europe allowed the euro to climb even higher, the current maximum is at around 1.3071. The first assessment of the euro area manufacturing PMI in April showed a very marked increase from 33.9 to 36.7 as the first evaluation of the service sector PMI, from 40.9 to 43.1. It turns out that the case in Europe, went to the amendment (ZEW index shows the same is not the first month). Even the new euro area industrial orders for February showed a marked decline in the forecast is weaker, only 0.6% m / m, from 34.1% to 34.5% y / y. So, can withstand the euro and euro more expensive than it is now.
We continue to expect growth in the euro, the collection of the foot bottom, seems to be finished. Until the next Fed meeting April 29 has left too little time, but it clearly can be expected to further mitigate the monetary policy. Thus, the consensus-forecast of Bloomberg, at a rate for the next meeting has shown a rather strange figure of 0.13% against the previous 0.25%. This is likely to mean that economists are waiting for reducing the current range at the rate the Fed 0-1/8% to 0-1/4%. Also today, the Fed conducts regular redemption of treasury bonds from the market. If the Fed starts, as in recent days to buy it for $ 7 billion at a time, the limit is intended to redeem the securities, will end more quickly than previously thought. Recall that the Fed going to buy back treasury securities to 300 billion dollars, of which half the volume (ie 150 billion) to be redeemed in the next three months. However, since the beginning of shopping (the first was held on March 25) at the moment, that is for an incomplete month, the Fed has already put on their balance sheets of paper at 59.71 billion dollars (plus the Fed will buy today). We therefore have reason to believe that the mitigation of monetary policy at the next meeting, may speak and to increase the repurchase Treasuries market. Apparently, selling dollars to otygryvanie this event has already begun.
We continue to expect growth in the euro, the collection of the foot bottom, seems to be finished. Until the next Fed meeting April 29 has left too little time, but it clearly can be expected to further mitigate the monetary policy. Thus, the consensus-forecast of Bloomberg, at a rate for the next meeting has shown a rather strange figure of 0.13% against the previous 0.25%. This is likely to mean that economists are waiting for reducing the current range at the rate the Fed 0-1/8% to 0-1/4%. Also today, the Fed conducts regular redemption of treasury bonds from the market. If the Fed starts, as in recent days to buy it for $ 7 billion at a time, the limit is intended to redeem the securities, will end more quickly than previously thought. Recall that the Fed going to buy back treasury securities to 300 billion dollars, of which half the volume (ie 150 billion) to be redeemed in the next three months. However, since the beginning of shopping (the first was held on March 25) at the moment, that is for an incomplete month, the Fed has already put on their balance sheets of paper at 59.71 billion dollars (plus the Fed will buy today). We therefore have reason to believe that the mitigation of monetary policy at the next meeting, may speak and to increase the repurchase Treasuries market. Apparently, selling dollars to otygryvanie this event has already begun.
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