Dollar again under pressure. There are rumors that the Gulf countries may refuse to use the dollar in transactions with oil.
At yesterday's session, the dollar declined against most major currencies, as the service sector on both sides of the Atlantic pleased good data: somewhere he was able to penetrate into the territory's economic recovery, but somewhere he has strengthened his position. In Europe, the PMI index in the services sector exceeded the forecast and amounted to 50.9, and in the UK - 55,3. However, in the center of attention was an American index ISM, which rose from 48.4 to 50.9. The index for the first time since August last year exceeded the boundary of the recession / recovery at 50.
Stock sites joyfully welcomed the statistics, noting that the first event of the growth over the past four sessions. However, on the currency front, the dollar was under pressure, as the proper always, when data showed the economic recovery. Even before the publication of data with comments on the currency markets were French Finance Minister Lagarde and European Central Bank President Trichet, who supported a strong dollar. A similar position was expressed Geithner, U.S. Treasury, but such rhetoric has had a limited effect on the market. The same goes for the morning of Minister of Finance of Japan Fujii, who mentioned that the weakness of the dollar was discussed at the Summit Group of Seven. "
In the early Asian session, while all attention was focused on the RBA unexpectedly in the British edition of "Independent" appeared an unusual article that stirred markets. The article said that Arab countries have entered into informal talks with China, Russia, Japan and France on how to replace the dollar in transactions with oil at the basket of currencies, which should include the yen, yuan, euro, gold, and a new unified currency which plans to introduce the Cooperation Council of Gulf countries. Despite the fact that to implement such plans no earlier than 2018, the currency markets have decided not to delay the sale of the dollar, especially given that in recent years and so he is not in demand. Recall that a similar market reaction, we have seen, when China, Brazil and India advocated the establishment of a new currency apart from the dollar.
Before announcing the decision the RBA markets chose to ignore the weak trade data for August, focusing on rates. By the way, the trade deficit remains high at-A $ 1.524 billion, a figure for July was revised to-A $ 1.783 billion was the main reason for the decrease in exports (the victim of a strengthening Australian dollar?).
But back to the meeting of the RBA. As a result, the RBA decided to raise rates by 25 bps from 3% to 3.25%, basing its decision on the fact that the world economy on the path to recovery and will continue to grow in 2010. Bank acknowledged that the Australian dollar is overvalued and that they take into account this fact when making decisions. They also noted strong growth in China and expressed the hope that the economic development of other trading partners will revert to trend in 2010.
Despite the fact that the market is basically sitting in the purchases of Australian, AUDUSD course after the decision was quickly 80 points, but at first was unable to break through to new highs in 2009, stood at 0.8844. However, the accompanying statement, RBA was permeated pro-inflationary sentiment - "probably fall in inflation will not be as strong as previously expected - and, ultimately, the course has updated yearly highs at 0.8875. Who is next on the waiting list for the rate increase? In the Asian region verbal hints to that experienced by South Korea and India, but in Europe are reluctant to make dramatic statements.
It is also worth noting that in the race Sellers dollar pound significantly lagged behind other major currencies, the reason why, perhaps, is the forthcoming meeting of the Committee on Monetary Policy Bank of England. Contrary to the RBA Bank of England is still very far from raising rates because economic growth and economic activity in the country can at best be called fragile. Without a doubt, in anticipation of the meeting will be walking the talk about increasing the money supply and lowering interest rates on bank reserves, under the influence of what a pound will continue to lag behind the market.
Today, Britain will put on the market the most important news of the day, namely prices from Halifax, the volume of production and production in the manufacturing industry. The North American region today will not be anything interesting, except for building permits and Ivey PMI index from Canada.
Saxo Bank
At yesterday's session, the dollar declined against most major currencies, as the service sector on both sides of the Atlantic pleased good data: somewhere he was able to penetrate into the territory's economic recovery, but somewhere he has strengthened his position. In Europe, the PMI index in the services sector exceeded the forecast and amounted to 50.9, and in the UK - 55,3. However, in the center of attention was an American index ISM, which rose from 48.4 to 50.9. The index for the first time since August last year exceeded the boundary of the recession / recovery at 50.
Stock sites joyfully welcomed the statistics, noting that the first event of the growth over the past four sessions. However, on the currency front, the dollar was under pressure, as the proper always, when data showed the economic recovery. Even before the publication of data with comments on the currency markets were French Finance Minister Lagarde and European Central Bank President Trichet, who supported a strong dollar. A similar position was expressed Geithner, U.S. Treasury, but such rhetoric has had a limited effect on the market. The same goes for the morning of Minister of Finance of Japan Fujii, who mentioned that the weakness of the dollar was discussed at the Summit Group of Seven. "
In the early Asian session, while all attention was focused on the RBA unexpectedly in the British edition of "Independent" appeared an unusual article that stirred markets. The article said that Arab countries have entered into informal talks with China, Russia, Japan and France on how to replace the dollar in transactions with oil at the basket of currencies, which should include the yen, yuan, euro, gold, and a new unified currency which plans to introduce the Cooperation Council of Gulf countries. Despite the fact that to implement such plans no earlier than 2018, the currency markets have decided not to delay the sale of the dollar, especially given that in recent years and so he is not in demand. Recall that a similar market reaction, we have seen, when China, Brazil and India advocated the establishment of a new currency apart from the dollar.
Before announcing the decision the RBA markets chose to ignore the weak trade data for August, focusing on rates. By the way, the trade deficit remains high at-A $ 1.524 billion, a figure for July was revised to-A $ 1.783 billion was the main reason for the decrease in exports (the victim of a strengthening Australian dollar?).
But back to the meeting of the RBA. As a result, the RBA decided to raise rates by 25 bps from 3% to 3.25%, basing its decision on the fact that the world economy on the path to recovery and will continue to grow in 2010. Bank acknowledged that the Australian dollar is overvalued and that they take into account this fact when making decisions. They also noted strong growth in China and expressed the hope that the economic development of other trading partners will revert to trend in 2010.
Despite the fact that the market is basically sitting in the purchases of Australian, AUDUSD course after the decision was quickly 80 points, but at first was unable to break through to new highs in 2009, stood at 0.8844. However, the accompanying statement, RBA was permeated pro-inflationary sentiment - "probably fall in inflation will not be as strong as previously expected - and, ultimately, the course has updated yearly highs at 0.8875. Who is next on the waiting list for the rate increase? In the Asian region verbal hints to that experienced by South Korea and India, but in Europe are reluctant to make dramatic statements.
It is also worth noting that in the race Sellers dollar pound significantly lagged behind other major currencies, the reason why, perhaps, is the forthcoming meeting of the Committee on Monetary Policy Bank of England. Contrary to the RBA Bank of England is still very far from raising rates because economic growth and economic activity in the country can at best be called fragile. Without a doubt, in anticipation of the meeting will be walking the talk about increasing the money supply and lowering interest rates on bank reserves, under the influence of what a pound will continue to lag behind the market.
Today, Britain will put on the market the most important news of the day, namely prices from Halifax, the volume of production and production in the manufacturing industry. The North American region today will not be anything interesting, except for building permits and Ivey PMI index from Canada.
Saxo Bank
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